INVESTOR ALERT: Expanded Investigation of Constant Contact, Inc. Announced by The Law Offices of Howard G. Smith
July 27 2015 - 10:53AM
Business Wire
Law Offices of Howard G. Smith announces an expanded
investigation 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 Law Offices of Howard G. Smith 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 Constant Contact shares, 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 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.
This press release may be considered Attorney Advertising in
some jurisdictions under the applicable law and ethical rules.
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version on businesswire.com: http://www.businesswire.com/news/home/20150727005857/en/
Law Offices of Howard G. SmithHoward G. Smith,
Esquire215-638-4847888-638-4847howardsmith@howardsmithlaw.comwww.howardsmithlaw.com
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