Harwood Feffer LLP Announces Investigation Of Motricity, Inc.
Harwood Feffer LLP announces that a class action lawsuit has been
commenced in the United States District Court for the Western District
of Washington on behalf of purchasers of the common stock of Motricity,
Harwood Feffer LLP announces that a class action lawsuit has been commenced in the United States District Court for the Western District of Washington on behalf of purchasers of the common stock of Motricity, Inc. (“Motricity≈ or the ACompany≈) (NASDAQ: MOTR – News) common stock from June 18, 2010 through August 9, 2011 (the "Class Period"). No class has yet been certified in the above action. Class members will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff no later than October 11, 2011 and be selected by the court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement and how much of a settlement to accept for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. You are not required to have sold your shares to seek damages to serve as a Lead Plaintiff. You may contact the Harwood Feffer LLP website ( http://www.hfesq.com) or Samuel K. Rosen, at firstname.lastname@example.org to ask any questions you may have in that regard. The Complaint charges that Motricity and certain of its officers and directors violated the federal securities laws. Specifically, defendants failed to disclose negative trends in Motricity’s business, including with Motricity’s most important customers, and represented that Motricity would continue to prosper despite the increasing popularity of smartphones, which provide Internet access without Motricity’s services. As a result of defendants’ false statements, Motricity stock traded as high as $30.74 per share on November 9, 2010. On May 3, 2011, Motricity announced first quarter 2011 financial results, reporting a net loss of ($6.1) million and revenue of $32.2 million. On this news, Motricity’s stock dropped $1.82 to close at $10.99 per share on May 4, 2011. Then, on August 9, 2011, Motricity issued its second quarter 2011 financial results, reporting a net loss of ($4.3) million and revenue of $34.6 million. On this news, Motricity stock fell 50%.
Shares of Motricity (Nasdaq:MOTR) were gapping down Friday morning with an open price 16.7% lower than Thursday's closing price. The stock closed at $1.32 yesterday and opened today's trading at $1.10.