NEW YORK, Sept. 2, 2015 (GLOBE NEWSWIRE) -- Morgan & Morgan announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of purchasers of MaxPoint Interactive, Inc. ("MaxPoint" or the "Company") (NYSE:MXPT) securities pursuant and/or traceable to the Company's initial public offering (the "IPO") on or about March 6, 2015 (the "Class Period"). The lawsuit seeks to recover damages for MaxPoint investors under the federal securities laws.
If you purchased MaxPoint securities during the Class Period, you may, no later than October 30, 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 MaxPoint Securities Class Action, contact Morgan & Morgan at 1(800) 732-5200 or email info@morgansecuritieslaw.com.
On March 6, 2015, MaxPoint completed 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 $74.75 million.
The complaint alleges that the Registration Statement used to conduct the IPO contained materially false and misleading statements regarding the Company's financial condition, business and prospects. According to the complaint, MaxPoint failed to disclose that it was deriving two-thirds of its sales from just 50 customers at the time of the IPO, and that as a result of this high customer concentration, it was more exposed to those 50 customers' budgetary proclivities and promotional activities. The complaint also alleges that the Company had been signing smaller customers with smaller advertising budgets in the months leading up to the IPO, and that as a result, MaxPoint's sales growth was declining at the time of the IPO, which would have a material 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.
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