NEW YORK, May 16, 2014 (GLOBE NEWSWIRE) -- On May 12, 2014, Scott+Scott, Attorneys at Law, LLP filed a class action complaint against Blucora, Inc. ("Blucora" or the "Company") in the U.S. District Court for the Western District of Washington. The complaint, which seeks remedies under the Securities Exchange Act of 1934, was filed on behalf of a class ("Class") consisting of those persons and entities who purchased or otherwise acquired Blucora securities (Nasdaq: BCOR ) between November 5, 2013 and February 20, 2014, inclusive (the "Class Period"). The complaint alleges that Blucora issued materially false and misleading statements regarding the Company's revenue prospects during the Class Period.
Investors who purchased or otherwise acquired Blucora securities during the Class Period may move the Court no later than July 14, 2014 to serve as lead plaintiff if they meet certain legal requirements. Class members may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain absent class members in the lawsuit. If you wish to view the complaint, discuss the Blucora litigation, or have questions concerning this notice or your rights, please contact Michael Burnett of Scott+Scott (mburnett@scott-scott.com, (800) 404-7770, (860) 537-5537) or visit the Scott+Scott website for more information: http://www.scott-scott.com .
There is no cost or fee to you.
Blucora operates internet search, online tax preparation and e-commerce businesses in the United States and internationally. The Company's search business, InfoSpace, provides search technology, aggregated content, and search services to its distribution partners and directly to consumers.
The complaint alleges that, throughout the Class Period, defendants issued false and/or misleading statements and/or failed to disclose material adverse facts concerning Blucora's business, operations, and prospects. Specifically, defendants misrepresented and/or failed to disclose that: (1) Blucora's main web properties were tied to malware, viruses, and browser hijackers that attack computers; (2) Blucora's search volumes had been boosted due to a rise in illicit search traffic; (3) a significant portion of Blucora's traffic was derived from malware, illicit traffic, pirated content and/or click fraud, including, involuntary clicks, artificial clicks, and illicit clicks; and (4) that Blucora's relationship with Google was impaired and that Google was unlikely to renew its contract on the same terms as its prior agreement.
On February 18, 2014, Gotham City Research LLC published a research report stating, among other things: (i) "+60% of [Blucora]'s revenue will evaporate in coming quarters, as Google realizes it is better off without [Blucora]"; (ii) "[a]t least 50% of [Blucora]'s traffic is derived from malware, click fraud, illicit traffic ( e.g ., child pornography), and otherwise suspect traffic"; and (iii) Blucora "is likely to receive scrutiny from Google, Inc. – one of Blucora's major customers – as well as advertisers, and regulatory agencies."
On this information, Blucora stock prices declined $2.00 per share, over 8%, to close at $21.70 per share on February 18, 2014, on unusually heavy volume. After the market closed on February 20, 2014, Blucora filed a Current Report on Form 8-K announcing that Google had only partially renewed its Google Services Agreement. On this news, shares of Blucora declined $1.77 per share, over 8%, to close at $19.80 per share on February 21, 2014, on unusually heavy volume. This resulted in significant losses to class members.
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide.
Michael Burnett Scott+Scott, Attorneys at Law, LLP (800) 404-7770 (860) 537-5537
