NEW YORK, Oct. 7, 2011 (GLOBE NEWSWIRE) -- Pomerantz Haudek Grossman & Gross LLP reminds shareholders that the Firm is continuing to investigate claims on behalf of investors of Motricity, Inc. ("Motricity" or the "Company") who purchased Motricity shares from June 18, 2010 through August 9, 2011 (the "Class Period").
If you are a shareholder who purchased Motricity securities during the Class Period, you have until October 11, 2011 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Rachelle R. Boyle at rrboyle@pomlaw.com or call 888.476.6529, ext. 350 (or 888.4-POMLAW), toll free.
The investigation concerns whether defendants issued materially false and misleading statements regarding the Company's internal controls, and true business and financial condition. Specifically, the investigation focuses on whether certain individuals violated federal securities laws by, among other things, failing to disclose: 1) negative trends in the Company's business, including faster than expected adoption of smartphones by consumers; 2) demand for the Company's services by the Company's largest consumers was not increasing to the extend represented; and, 3) the Company's business was not growing as fast as represented, particularly domestically.
On June 17, 2010, Motricity priced its IPO at $10 per share, for net proceeds of $51.4 million. As a result of defendants' false statements, Motricity stock traded at artificially inflated prices during the Class Period, reaching a high of $30.74 per share on November 9, 2010.
On May 3, 2011, Motricity issued a press release that announced a net loss of $6.1 million, or $0.15 diluted earnings per share for Q1 2011. Motricity's stock fell $1.82 per share to close at $10.99 per share on May 4, 2011. Then, on August 9, 2011, Motricity reported a net loss of $4.3 million, or $0.09 diluted earnings per share for Q2 2011, well below research analysts' forecasts. Accordingly, Motricity's shares sunk, opening at $2.26 per share on August 10, 2011, a decline of 50% in heavy trading volume.
The Pomerantz Firm, with offices in New York, Chicago, and Washington, D.C., is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.