Bernstein Liebhard LLP Announces That A Suit Has Been Filed Against comScore Inc.
March 11, 2016
Bernstein Liebhard LLP today announced that a securities class action has been filed in the United States District Court for the Southern District of New York on behalf of a class (the “Class”) consisting of all persons or entities who purchased securities of comScore Inc. (“comScore” or the “Company”) (NASDAQ: SCOR) from May 5, 2015 through March 7, 2016 (the “Class Period”). The complaint charges comScore and certain of its officers with violations of the Securities Exchange Act of 1934.
On February 29, 2016, the Company filed a Notification of Late Filing with the Securities and Exchange Commission (“SEC”), disclosing that the Company would be unable to file its 10-K for the fiscal year ending December 31, 2015 on time because the Company “require[d] additional time to prepare its financial statements and complete the external audit of those statements include in the Form 10-K.” The Company further disclosed that the Company’s Audit Committee had been notified of “certain potential accounting matters” and that the Audit Committee “immediately commenced a review of the matters with the assistance of independent counsel and advisors.” The Company stated it expected to file its 10-K by March 15, 2016
On this news, shares of comScore fell $1.15 per share, or 2.8% on March 1, 2016, on unusually heavy volume.
On March 7, 2016, the Company filed an amendment to the Notice of Late Filing and disclosed that on March 5, 2016 the Audit Committee advised the Company’s Board of Directors that it did not expect to finalize its review before March 15, 2016. The Company also announced that “out of an abundance of caution” it was suspending the Company’s previously announced share repurchase program.
On this news, shares of comScore fell $13.67 per share, or 33.5% on March 7, 2016, on unusually heavy volume.
The Complaint alleges that comScore made materially false and misleading statements to investors and/or failed to disclose: (i) that the Company’s accounting practices were not in compliance with applicable SEC regulations; (ii) that the Company lacked adequate internal controls over accounting; (iii) that, as such the Company would be unable to filed its Form 10-K for the fiscal year ended December 31, 2015, in a timely manner, and (iv) as a result, the Company’s financial statements, as well as Defendants’’ statements about comScore’s business, operations, and prospects were false and misleading and/or lacked a reasonable basis.
Plaintiffs seek to recover damages on behalf of all Class members who invested in comScore securities during the Class Period. If you invested in comScore securities as described above, and lost money on the transactions, you may wish to join in this action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than May 9, 2016.
A “lead plaintiff” is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Bernstein Liebhard LLP, or other counsel of your choice, to serve as your counsel in this action.
Bernstein Liebhard LLP has pursued hundreds of securities, consumer and shareholder rights cases and recovered over $3.5 billion for its clients. The National Law Journal has recognized Bernstein Liebhard for twelve consecutive years as one of the top plaintiffs’ firms in the country.
You can obtain a copy of the complaint from the clerk of the court for the United States District Court for the Southern District of New York.