Shareholder rights law firm Robbins Arroyo LLP announces
that a class action complaint was filed in the U.S. District Court for
the Southern District of New York. The complaint alleges that officers
and directors of Marchex, Inc. (NASDAQGS: MCHX) violated the Securities
Exchange Act of 1934 between March 19, 2014 and September 18, 2014, by
making materially false and misleading statements about Marchex's
business prospects. Marchex operates as a mobile advertising technology
company in the United States and Canada.
View this information on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/shareholders-rights-blog/marchex-inc
Marchex Lowers Future Guidance
According to the complaint, from March through August 2014, Marchex
issued a series of press releases touting the company's financial
results and predicting a positive business outlook. Marchex stated, "Our
Call Analytics platform is enabling Marchex to provide unique
intelligence and insight around calls at the same time mobile and
call-based advertising is emerging as a major theme for advertisers. As
a result, we are further integrating with some of our largest advertises
and landing new customers."
However, the complaint alleges that Marchex failed to disclose that
Allstate, one of its key customers, sought to switch its business with
Marchex to a fixed-fee basis from payments made for each call, and that
consequently, Marchex's revenue would be negatively impacted. In a press
release issued on September 18, 2014, Marchex lowered future guidance
due to this shift in Allstate's payment model. On this news, Marchex
stock fell $3.38 per share, or over 45%, to close at $4.01 per share on
September 18, 2014.
Marchex Shareholders Have Legal Options
Concerned shareholders who would like more information about their
rights and potential remedies can contact attorney Darnell R. Donahue at
(800) 350-6003, DDonahue@robbinsarroyo.com,
or via the shareholder
information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder
rights law. The firm represents individual and institutional investors
in shareholder derivative and securities class action lawsuits, and has
helped its clients realize more than $1 billion of value for themselves
and the companies in which they have invested.
Attorney Advertising. Past results do not guarantee a similar outcome.
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