NEW YORK, Sept. 25, 2013 (GLOBE NEWSWIRE) -- Pomerantz Grossman Hufford Dahlstrom & Gross LLP has filed a class action lawsuit against Expedia, Inc. ("Expedia" or the "Company") (Nasdaq: EXPE ) and certain of its officers. The class action, filed in United States District Court, Western District of Washington, and docketed under 13-cv-01735, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired securities of Expedia between July 27, 2012 and July 25, 2013 both dates inclusive (the "Class Period"). This class action seeks to recover damages against the Company and certain of its officers and directors as a result of alleged violations of the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased Expedia securities during the Class Period, you have until October 28, 2013 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com . To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Expedia is an Internet-based travel website company headquartered in Bellevue, Washington, with localized sites for 29 countries. Its websites book airline tickets, hotel reservations, car rentals, cruises, vacation packages and various attractions and services via the World Wide Web and telephone travel agents. In 2011, Expedia split into two publicly traded companies by spinning off its TripAdvisor brand of travel sites.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business and operations. Specifically, Defendants made false and misleading statements and/or failed to disclose that: (a) that following the spin-off, TripAdvisor had been directing a significant amount of lucrative web traffic to Expedia pursuant to an informal strategic partnership between the two companies that inured to the benefit of Expedia and to the detriment of TripAdvisor; (b) that the lucrative web traffic directed to Expedia from TripAdvisor following the spin-off had been a material source of Expedia's outsized revenues following the spin-off; (c) that TripAdvisor would stop directing web traffic to Expedia in early 2013; and (d) that performance at the Company's Hotwire unit was failing.
On July 25, 2013, after the close of trading, Expedia issued a press release announcing its second quarter 2013 financial results for the quarter ended June 30, 2013. Expedia's second-quarter 2013 profit fell to $71.5 million from $105.2 million a year earlier. Overall, bookings rose only 13%, well below the 19% surge the Company posted during fiscal 2012. The Company also lowered its guidance for 2013 adjusted earnings, predicting growth in the mid to high single digits. On this news, Expedia shares declined $17.80 per share or nearly 27%, to close at $47.20 per share on July 26, 2013.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com .
Robert S. Willoughby Pomerantz Grossman Hufford Dahlstrom & Gross LLP
