[October 02, 2015] |
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Law Offices of Howard G. Smith Reminds Constant Contact, Inc. Investors Of Upcoming Deadline
Law
Offices of Howard G. Smith reminds investors of the upcoming October
6, 2015 deadline to file a lead plaintiff motion in the class action
filed on behalf of a class (the "Class") of purchasers of the securities
of Constant Contact (News - Alert), Inc. ("Constant Contact" or the "Company") (NASDAQ:
CTCT) between October 23, 2014 and July 23, 2015, inclusive (the "Class
Period"). Investors who suffered losses of over $100,000 on their
investment in Constant Contact securities are encouraged to contact the
Law Offices of Howard G. Smith to discuss their legal rights.
Constant Contact originated as an email marketing platform for small and
midsize organizations. The Company has progressed to provide a suite of
online marketing tools that are designed for small organizations,
including small businesses, associations and non-profits.
The complaint alleges that the Company and its executives violated the
federal securities laws by issuing misleading statements during the
Class Period regarding Constant Contact's business operations and
financial performance. Specifically, defendants made false and/or
misleadingstatements and/or failed to disclose: (1) that the Company's
gross customer additions were lower than expected; (2) that the Company
was experiencing negative trends in customer conversion rates; (3) that
the Company was steering new customers towards the lowest-priced
packages; (4) that, as a result, the Company's revenues for 2015 would
be below expectations; and (5) that, as a result of the foregoing,
Defendants' statements about Constant Contact's business operations and
prospects were false and misleading and/or lacked a reasonable basis.
On July 23, 2015, after the market closed, the Company disclosed
earnings results for the second quarter of 2015 with a weak third
quarter outlook. Constant Contact experienced low trial-to-conversion
rates in April and May of 2014 and a significant swing in product mix
with approximately 80% of new customers choosing the lowest-priced Email
package instead of higher-priced offerings. On this news, shares of
Constant Contact declined $3.35 per share, over 11%, to close on July
24, 2015, at $26.18 per share, on unusually heavy volume
If you purchased shares of Constant Contact during the Class Period you
may move the Court no later than October 6, 2015 to request
appointment as lead plaintiff if you meet certain legal requirements. To
be a member of the Class you need not take any action at this time; you
may retain counsel of your choice or take no action and remain an absent
member of the Class. If you wish to learn more about this action, or if
you 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 [email protected],
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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20151002005588/en/
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