NEW YORK, April 05, 2019 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Care.com, Inc. (“Care.com” or the “Company”) (NYSE: CRCM) in the United States District Court for the District of Massachusetts on behalf of those who purchased or acquired the securities of Care.com between March 27, 2015 and April 1, 2019, inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder.
The Complaint alleges that Defendants misleadingly touted the Company’s “proactive” screening procedures. On March 8, 2019, a Wall Street Journal article revealed the Company’s ineffective screening procedures, reporting that care providers listed on the website “had police records . . . and later were accused of committing crimes while caring for customers’ children or elderly relatives.” The Company’s stock dropped 13% after these revelations.
On March 31, 2019, a follow-up Wall Street Journal article stated that “hundreds of day-care centers” listed as “state licensed” on the Company’s website did not appear to be, and that tens of thousands of unverified day-care center listings were scrubbed from the Company’s website just before the March 8, 2019 Wall Street Journal article was published. The Company’s stock dropped another 7% after these disclosures.
Investors who purchased or otherwise acquired shares during the Class Period should contact the Firm prior to the June 3, 2019 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish 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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