Law Offices of Howard G. Smith announces that it is investigating potential claims on behalf of Ambassadors Group, Inc. (“Ambassadors Group” or the “Company”) (NASDAQ:EPAX) concerning possible breaches of fiduciary duty or other violations of law by the Company’s board of directors. Ambassadors Group organizes and promotes educational travel and sports programs for students, athletes and professionals, and operates an Internet research and educational website which provides online research content.
The investigation concerns allegations contained in a securities class action lawsuit pending in the United States District Court for the Eastern District of Washington. The lawsuit alleges that between February 8, 2007 and October 23, 2007, the Company and certain of its executive officers misrepresented or failed to disclose material adverse information concerning the Company’s business, operations and financial prospects. Specifically, the complaint alleges that the defendants misrepresented or failed to disclose that: (a) the Company was experiencing a lower conversion rate from people attending its informational meetings to booking travel; (b) there was a decrease in the number of enrolled participants for the Company’s 2008 travel programs, especially in its international outbound programs; (c) the Company had utilized a different database in order to promote its travel programs to prospective clients; and (d) as a result of the foregoing, defendants lacked a reasonable basis for their positive statements about the Company and its prospects.
In November 2009 Ambassadors Group disclosed that the Securities and Exchange Commission (“SEC”) had issued a formal order of investigation with respect to trading in the Company’s securities, and that the Company, certain of its officers, directors and employees, among other persons, have received subpoenas from the SEC requesting information. In addition, on June 2, 2010, the District Court issued an order denying defendants’ motions to dismiss the pending securities lawsuit.
If you purchased Ambassadors Group securities before February 2007 and still hold those shares, if you have information or would like to learn more about these claims, or if you wish to discuss these matters or 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
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