Branham Law, LLP announces it is investigating Demand Media, Inc. ("DMD" or the "Company") (NYSE: DMD) to determine whether it has violated securities laws by issuing false and misleading statements to its shareholders. This investigation is a result of disclosures made about changes to Google’s search engine methodologies that have significantly reduced the references to the Company's websites. References to the Company’s websites are a substantial source of revenue for DMD.
Prior to January 26, 2011, Google announced it was already implementing changes to its search engine methodology that would reduce the number of references to "content farm" websites like those operated by DMD. The Company generates revenue when a user clicks on one of its highly ranked bits of media from an internet search engine, most often Google, which serves as the Company's largest referrer.
With these changes in search engine methodologies, visits to the Company's websites have declined along with DMD's revenues. Our investigation focuses on whether the Company properly disclosed business risks and other potential problems in the registration statements and prospectus it issued in connection with the Company's January 26, 2011 Initial Public Offering of DMD common stock.
If you are a DMD shareholder and you purchased shares of DMD in the January 26, 2011 Initial Public Offering and would like more information, or if you have any information about this investigation, please contact attorney
Trey Branham at Branham Law, LLP via email at
firstname.lastname@example.org or via toll-free telephone at (855) 722-5910.