Coughlin Stoia Geller Rudman & Robbins LLP Files Class Action Suit Against Ambassadors Group Inc.
July 14 2009 - 5:26PM
Business Wire
Coughlin Stoia Geller Rudman & Robbins LLP (�Coughlin
Stoia�) (http://www.csgrr.com/cases/ambassadorsgroup/) today
announced that a class action has been commenced on behalf of an
institutional investor in the United States District Court for the
Eastern District of Washington on behalf of purchasers of
Ambassadors Group Inc. (�Ambassadors Group�) (NASDAQ:EPAX) common
stock during the period between February 8, 2007 and October 23,
2007 (the �Class Period�).
If you wish to serve as lead plaintiff, you must move the Court
no later than 60 days from today. If you wish to discuss this
action or have any questions concerning this notice or your rights
or interests, please contact plaintiff�s counsel, Samuel H. Rudman
or David A. Rosenfeld of Coughlin Stoia at 800/449-4900 or
619/231-1058, or via e-mail at djr@csgrr.com. If you are a member
of this class, you can view a copy of the complaint as filed or
join this class action online at
http://www.csgrr.com/cases/ambassadorsgroup/. Any member of the
putative 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.
The complaint charges Ambassadors Group and certain of its
officers and directors with violations of the Securities Exchange
Act of 1934. Ambassadors Group is an educational company that
organizes and promotes international and domestic travel programs
for youth, athletes, and professionals.
The complaint alleges that during the Class Period, defendants
issued materially false and misleading statements regarding the
Company�s business prospects. Specifically, defendants
misrepresented and/or failed to disclose the following adverse
facts: (a) that the Company was experiencing a lower conversion
rate from people attending its informational meetings to booking
travel; (b) that there was a decrease in the number of enrolled
participants for the Company's 2008 travel programs, especially in
its international outbound programs; (c) that 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. As a result of
defendants� false and misleading statements, Ambassadors Group
stock traded at artificially inflated prices during the Class
Period, reaching a high of $40.99 per share on October 18,
2007.
Then, on October 22, 2007, Ambassadors Group announced its
financial results for the third quarter of 2007, the period ending
September 30, 2007. For the quarter, the Company reported net
income of $22.5 million and $1.12 fully diluted earnings per share.
The Company also announced that �as of October 16, 2007, its net
enrolled participants for 2008 travel programs were 26,200 compared
to 37,300 participants as of the same date last year for its 2007
programs� and that the �decrease in net enrollments for its 2008
programs will negatively impact its 2008 earnings.� In response to
this announcement, the price of Ambassadors Group common stock fell
$17.73 per share, or approximately 44%, to close at $21.04 per
share.
Plaintiff seeks to recover damages on behalf of all purchasers
of Ambassadors Group common stock during the Class Period (the
�Class�). The plaintiff is represented by Coughlin Stoia, which has
expertise in prosecuting investor class actions and extensive
experience in actions involving financial fraud.
Coughlin Stoia, a 190-lawyer firm with offices in San Diego, San
Francisco, Los Angeles, New York, Boca Raton, Washington, D.C.,
Philadelphia and Atlanta, is active in major litigations pending in
federal and state courts throughout the United States and has taken
a leading role in many important actions on behalf of defrauded
investors, consumers, and companies, as well as victims of human
rights violations. The Coughlin Stoia Web site
(http://www.csgrr.com) has more information about the firm.
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