NEW YORK, May 22, 2015 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed in the United States District Court for the Eastern District of New York on behalf of all persons or entities who purchased Etsy, Inc. (“Etsy” or the “Company”) (Nasdaq:ETSY) securities between April 16, 2015 and May 10, 2015, inclusive (“Class Period”).
The Complaint alleges the Company and its top executives misled investors by failing to disclose the risks associated with the Company’s widespread sale of counterfeit goods, and/or goods that infringed on intellectual property rights. Specifically, the Complaint alleges that Defendants misstated and/or failed to disclose that: (a) over 5% of all merchandise for sale on Etsy’s website were either counterfeit or constituted trademark or copyright infringement; (b) brands are increasingly pursing sellers on Etsy’s platform for trademark or copyright infringement, jeopardizing Etsy’s listing fees and commissions; and (c) as a result, Etsy’s public statements were materially false and misleading at all relevant times.
When the truth entered the market, Etsy shares fell $1.86 per share on heavy trading volume to close at $20.85 per share on May 11, 2015. The Company’s shares have declined further on news of Etsy’s poor quarterly results, and that a major intellectual property rights holder has sued the Company for infringement. On May 20, 2015, the Company’s shares closed at $17.20, a nearly $14.00 per share decline from the Company’s recent high of $31.00 on April 16, 2015.
If you wish to serve as lead plaintiff, you must move the Court no later than July 13, 2015. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
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