Seattle-based Hagens Berman Sobol Shapiro LLP today announced that it has filed a class-action lawsuit against Motricity Inc. (NASDAQ:MOTR) on behalf of investors for potential violations of Federal securities laws, including allegations of issuing materially false and misleading statements to investors. Investors who purchased Motricity common stock between June 18, 2010, and Aug. 9, 2011, inclusive (the “Class Period”), or through the company’s June 17, 2010, initial public offering are encouraged to contact the firm by calling plaintiff’s counsel Karl Barth at 206-623-7292 or by email at MOTR@hbsslaw.com. More information is available at www.hbsslaw.com/motr. Investors wishing to serve as lead plaintiff must move the court by Oct. 11, 2011. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. The lawsuit, filed in the United States District Court for the Western District of Washington on Aug. 12, 2011, alleges that Motricity and certain of its officers and directors issued false and materially misleading statements regarding the company’s financial results. Specifically, the complaint alleges that Motricity failed to disclose that an increase in the popularity of smartphones would hurt the company’s sales. Motricity released its first quarter 2011 financial results on May 3, 2011, reporting a net loss of $6.1 million. On this news, Motricity’s stock fell 14 percent, closing at $10.99 per share on May 4, 2011, according to the complaint. On August 9, 2011, the company issued its second quarter 2011 financial results, reporting a net loss of $4.3 million. The next day, the company’s stock opened at $2.26 per share, a decline of 50 percent, the complaint details. The lawsuit seeks to recover damages on behalf of all purchasers of common stock of Motricity stock between June 18, 2010, and August 9, 2011.
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.