GPM Announces Expanded Investigation of Constant Contact, Inc.
July 24 2015 - 5:47PM
Business Wire
Glancy Prongay & Murray LLP (“GPM”) announces that it has
expanded its investigation into potential claims on behalf of
investors of Constant Contact, Inc. (“Constant Contact” or the
“Company”) (NASDAQ: CTCT) concerning the recent disclosures
regarding its lackluster earnings, and the Company’s and its
officers’ possible violations of federal securities laws. Constant
Contact’s investors are encouraged to contact GPM to discuss the
alleged wrongdoing, and steps investors can take to recover any
losses caused by the Company’s alleged fraud. The expanded
investigation includes claims that the Company’s recent financial
disclosures reveal further alleged securities fraud.
Constant Contact assists small and medium size organizations
through a suite of online marketing tools. On April 30, 2015, after
the market close, the Company posted results that fell below
expectations. Amongst other issues, Constant Contact announced
revenue of $90.4 million, that fell below analysts’ expectations of
$91.1 million. In connection with the Company’s poor results, CEO
Gail Goodman stated “[w]e were disappointed with the mixed results
for the quarter, as revenue came in below expectations while
profitability was better than expected. In the quarter we didn’t
deliver an acceleration in customer additions as expected, which
resulted in missing our revenue goal. Given the current trends, we
are adjusting down our revenue plans for the remainder of the
fiscal year.” On this news Constant Contact shares fell over 21%,
or $7.34 per share to close on May 1, 2015 at $27.51 per share.
On July 23, 2015, after the market closed, the Company posted
earnings results for the second quarter of 2015 and lowered revenue
outlook for the third quarter based on issues such as a sharp swing
in product mix with 80 percent customers buying stand-alone email,
as well as depressed trial-to-conversion rates during April and
May. On this news, Constant Contact shares dropped at least 18%,
setting new 52-week lows in the process, during intraday trading on
July 24, 2015.
If you purchased shares of Constant Contact, have information or
would like to learn more about these claims, or have any questions
concerning this announcement or your rights or interests with
respect to these matters, please contact Casey Sadler of GPM, 1925
Century Park East, Suite 2100, Los Angeles, California 90067 at
310-201-9150, Toll-Free at 888-773-9224, by email to
shareholders@glancylaw.com, or visit our website at
http://www.glancylaw.com. If you inquire by email please include
your mailing address, telephone number and number of shares
purchased.
This press release may be considered Attorney Advertising in
some jurisdictions under the applicable law and ethical rules.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150724005875/en/
Glancy Prongay & Murray LLP, Los AngelesCasey Sadler,
310-201-9150 or
888-773-9224shareholders@glancylaw.comwww.glancylaw.com
(MM) (NASDAQ:CTCT)
Historical Stock Chart
From Jul 2024 to Aug 2024
(MM) (NASDAQ:CTCT)
Historical Stock Chart
From Aug 2023 to Aug 2024