Law Offices of Howard G. Smith Announces Investigation on Behalf of Shareholders of Ambassadors Group, Inc.
October 15 2010 - 7:33PM
Business Wire
Law Offices of Howard G. Smith announces that it is
investigating potential claims on behalf of Ambassadors Group, Inc.
(“Ambassadors Group” or the “Company”) (NASDAQ:EPAX) concerning
possible breaches of fiduciary duty or other violations of law by
the Company’s board of directors. Ambassadors Group organizes and
promotes educational travel and sports programs for students,
athletes and professionals, and operates an Internet research and
educational website which provides online research content.
The investigation concerns allegations contained in a securities
class action lawsuit pending in the United States District Court
for the Eastern District of Washington. The lawsuit alleges that
between February 8, 2007 and October 23, 2007, the Company and
certain of its executive officers misrepresented or failed to
disclose material adverse information concerning the Company’s
business, operations and financial prospects. Specifically, the
complaint alleges that the defendants misrepresented or failed to
disclose that: (a) the Company was experiencing a lower conversion
rate from people attending its informational meetings to booking
travel; (b) there was a decrease in the number of enrolled
participants for the Company’s 2008 travel programs, especially in
its international outbound programs; (c) the Company had utilized a
different database in order to promote its travel programs to
prospective clients; and (d) as a result of the foregoing,
defendants lacked a reasonable basis for their positive statements
about the Company and its prospects.
In November 2009 Ambassadors Group disclosed that the Securities
and Exchange Commission (“SEC”) had issued a formal order of
investigation with respect to trading in the Company’s securities,
and that the Company, certain of its officers, directors and
employees, among other persons, have received subpoenas from the
SEC requesting information. In addition, on June 2, 2010, the
District Court issued an order denying defendants’ motions to
dismiss the pending securities lawsuit.
If you purchased Ambassadors Group securities before February
2007 and still hold those shares, if you have information or would
like to learn more about these claims, or if you wish to discuss
these matters or have any questions concerning this announcement or
your rights or interests with respect to these matters, please
contact Howard G. Smith, Esquire, of Law Offices of Howard G.
Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020
by telephone at (215) 638-4847, Toll Free at (888) 638-4847, or by
email to howardsmith@howardsmithlaw.com, or visit our website at
http://www.howardsmithlaw.com.
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