NEW YORK, June 16, 2015 (GLOBE NEWSWIRE) -- Morgan & Morgan reminds investors that a class action lawsuit has been filed against Etsy, Inc. ("Etsy" or the "Company") (Nasdaq:ETSY) and certain of its officers. The class action, filed in the United States District Court for the Eastern District of New York, is on behalf of a class consisting of all persons or entities who purchased Etsy securities between April 16, 2015 and May 10, 2015 inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934.
If you purchased Etsy securities during the Class Period, you may, no later than July 13, 2015, request that the Court appoint you lead plaintiff of the proposed class. A lead plaintiff is a representative party that acts on behalf of all class members in directing the litigation. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
If you want more information about the Etsy Securities Class Action, contact Morgan & Morgan at 1(800) 732-5200 or email info@morgansecuritieslaw.com
Etsy operates online and offline marketplaces to buy and sell handmade items, vintage goods, and craft supplies. The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements regarding the Company's business, operational and compliance policies. Specifically, defendant failed to disclose that more than 5% of all merchandise for sale on Etsy's website were either counterfeit or constituted trademark or copyright infringement, that Brands are increasingly pursuing sellers on Etsy's platform for trademark or copyright infringement.
On May 11, 2015, before the market opened for trading, Gil Luria, an equity analyst at Wedbush Securities, issued a note downgrading Etsy to "Underperform." In the note, Luria alleged that more than 5% of merchandise sold on Etsy's platform were either counterfeit or violated trademark protections.
Following this news, shares of Etsy fell $1.86, or over 8%, on unusually heavy volume, to close at $20.85 on May 11, 2015.
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