NEW YORK, Sept. 01, 2015 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces a class action has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of the common stock of MaxPoint Interactive, Inc. ("MaxPoint" or the "Company") (NYSE:MXPT) pursuant and/or traceable to the Company's initial public offering (the "IPO") on or about March 6, 2015, seeking to pursue remedies under the Securities Act of 1933 (the "Securities Act").
The complaint is brought against MaxPoint, certain of its executives and the underwriters of its IPO with violations of the Securities Act. MaxPoint is a provider of business intelligence and marketing automation software services designed to enable national brands to drive local in-store sales.
On March 6, 2015, MaxPoint conducted the IPO, selling more than 6.5 million shares of MaxPoint common stock to the public at $11.50 per share pursuant to a Registration Statement and Prospectus (collectively, the "Registration Statement") issued in connection with the IPO, raising more than $74 million.
The complaint charges that the Registration Statement used to implement the IPO contained false and misleading statements regarding the Company's financial condition and business prospects. According to the complaint, MaxPoint failed to disclose that it was receiving two-thirds of its sales from only 50 customers at the time of the IPO, and that as a result of its reliance on these few customers, it was more exposed to the budgetary and promotional problems and issues of these customers. The complaint also alleges MaxPoint had been signing smaller customers with smaller advertising budgets in the months leading up to the IPO, and that as a result, the Company’s sales growth was shrinking at the time of the IPO, which would have a negative impact on MaxPoint's profitability. Since the IPO, the price of MaxPoint common stock has declined approximately 60% and is currently trading at below $5.00 per share.
The action seeks to recover damages on behalf of all purchasers of MaxPoint common stock pursuant and/or traceable to the Company’s IPO (the “Class).
If you wish to serve as lead plaintiff, you must move the Court no later than October 30, 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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