| Company: | Motricity, Inc. |
| Ticker Symbol: | MOTR |
| Class Period: | Jun-18-10 to Aug-9-11 |
| Date Filed: | Aug-12-11 |
| Lead Plaintiff Deadline: | Oct-11-11 |
| Court: | Western District of Washington |
| Allegations: | |
The complaint charges Motricity and certain of its officers and directors with violations of the Securities Act of 1933 and the Securities Exchange Act of 1934. Motricity provides mobile data solutions that enable wireless carriers to deliver mobile data services to their subscribers in the United States, the United Kingdom, the Netherlands, and Singapore.
On June 17, 2010, Motricity filed a Registration Statement with the SEC to facilitate the offering of 6 million shares of Motricity common stock to the public. On June 18, 2010, Motricity announced the pricing of its IPO at $10 per share for net proceeds of $51.4 million.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company' business prospects and financial results. Specifically, defendants failed to disclose negative trends in Motricity' business, including with Motricity' most important customers, and represented that the Company would continue to prosper despite the increasing popularity of smartphones, which provide Internet access without Motricity' services. 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 announcing its first quarter 2011 financial results. The Company reported a net loss of ($6.1) million, or ($0.15) diluted earnings per share, and revenue of $32.2 million. On this news, Motricity' stock dropped $1.82 per share to close at $10.99 per share on May 4, 2011. Then, on August 9, 2011, Motricity issued its second quarter 2011 financial results, reporting a net loss of ($4.3) million, or ($0.09) diluted earnings per share and revenue of $34.6 million. This result fell well short of Wall Street' forecast. As a result of this news, Motricity' stock price fell, opening at $2.26 per share on August 10, 2011, a decline of 50% on huge volume.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
