The law firm of Wohl & Fruchter LLP announces that it has commenced an investigation into possible violations of federal securities laws by officers and directors of Bankrate, Inc. (Bankrate) (NYSE: RATE).
Bankrate is an online publisher of financial data. After the close of the market on October 15, 2012, Bankrate pre-announced preliminary third-quarter revenue and earnings that fell widely below analyst expectations. On October 16, 2012, in a conference call, Bankrate’s CEO, Thomas Evans, cited termination of significant insurance lead sources for the expected shortfall.
Upon this news, Bankrate shares fell over 22 percent to close at $11.26 per share on October 16, 2012, representing a loss of shareholder value of over $320 million.
Wohl & Fruchter’s investigation concerns whether officers and directors of Bankrate violated federal securities laws by, among other things, previously inaccurately communicating the expected impact of insurance lead source terminations on the company’s financial results, and manipulating the timing of such terminations.Persons with relevant information, and Bankrate shareholders with questions about this investigation, are invited to contact our Firm by calling 866.582.8140. Additional information is available on our website at: http://www.wohlfruchter.com/cases/rate. About Wohl & Fruchter Wohl & Fruchter LLP represents plaintiffs in litigation arising from fraud and other fiduciary breaches by corporate managers, as well as other complex litigation matters. Please visit our website, www.wohlfruchter.com, to learn more about our Firm, or contact one of our partners. This release may be deemed to constitute attorney advertising.