Gainey McKenna & Egleston Announces a Class Action Lawsuit has Been Filed Against Marchex, Inc. (MCHX)


NEW YORK, Nov. 18, 2015 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston 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 all persons or entities that purchased the securities of Marchex, Inc. (“Marchex” or the “Company”) (Nasdaq:MCHX) between March 19, 2014 through September 18, 2014 (the “Class Period”), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).

The Complaint alleges that Defendants issued materially false and misleading statements to investors and/or failed to disclose that: (1) Allstate sought to switch its business with Marchex to a fixed-fee basis from payments made for each call; (2) consequently, Marchex’s revenue would be negatively impacted; and (3) as a result of the foregoing, defendants’ public statements about Marchex’s business, operations, and prospects were false and misleading and/or lacked a reasonable basis at all relevant times.

On September 18, 2014, the Company reported to investors the need to lower future guidance as a result of a shift in one of its key customer’s payment model. The Company stated, in relevant part, that it, “lower[ed] its 2014 call-driven revenue outlook . . . [a]s a result of revised commitments from Allstate in the fourth quarter.” The Company further stated that Allstate sought to switch its business with Marchex to a fixed-fee basis from payments made for each call. On this news, shares of the Company fell by $3.38 per share, or over 45%, to close at $4.01 per share on September 18, 2014, on unusually heavy volume.

If you wish to serve as lead plaintiff, you must move the Court no later than January 18, 2016A 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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