The Shareholders Foundation announces that an investigation on behalf of current long-term investors in shares of Bankrate Inc (NYSE:RATE) is ongoing concerning potential breaches of fiduciary duties by certain directors and officers of Bankrate Inc.
Investors who are current long term investors in Bankrate Inc (NYSE:RATE) shares, have certain options and should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 – 1554.
The investigation by a law firm for current long term investors in NYSE:RATE stocks follows a lawsuit filed recently against Bankrate Inc over alleged securities laws violations. The investigation on behalf of current long term investors in NYSE:RATE stocks, concerns whether certain Bankrate officers and directors are liable in connection with the allegations made in that lawsuit.
According to that complaint filed in the U.S. U.S. District Court for the Southern District of New York the plaintiff alleges that Bankrate Inc, Apax Partners, and underwriters of the Company’s securities violated the Securities Act of 1933 and the Securities Exchange Act of 1934. More specifically, the plaintiff claims that the defendants issued between June 16, 2011 through October 15, 2012 allegedly false and misleading press releases, financial statements, filings with the Securities and Exchange Commission, made false and misleading statements and omissions during investor conference calls, and sold the Company’s shares in the IPO and secondary offering by means of allegedly false and misleading prospectuses.
The plaintiff says that the defendants misled investors regarding the quality of Bankrate’s insurance leads and as a result of Defendants’ allegedly false statements and omissions, Bankrate Inc’s securities traded at artificially inflated prices between June 16, 2011 through October 15, 2012.
On October 15, 2012, after the market closed, Bankrate Inc announced its preliminary Third Quarter Fiscal 2012 Results. Among other things, Bankrate Inc said its Total revenue for the third quarter is expected to be between $115.5 million and $117.5 million. Furthermore Bankrate Inc said it that adjusted earnings before interest, taxes, depreciation, and amortization, excluding share-based compensation expense and IPO and deal related expenses, are expected to be between $28.5 and $30 million in the third quarter of 2012, compared to $36.0 million in the third quarter of 2011, or a decline of 19% at the midpoint of the range.
Shares of Bankrate Inc (NYSE:RATE) fell from $14.50 per share on October 15, 2012 to $10.40 per share on October 16, 2012 and continued to decline to as low as $10.17 on November 8, 2012.
Those who purchased shares of Bankrate Inc have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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