BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces the filing of a class action on behalf of investors of Endurance International Group Holdings, Inc. (“Endurance” or the “Company”) (NASDAQ: EIGI), in the United States District Court for the District of Massachusetts on behalf of a class (the “Class”) comprising purchasers of Endurance securities between November 4, 2014 and April 27, 2015, inclusive (the “Class Period”).
Endurance provides cloud-based platform solutions for small and medium-sized businesses. The Complaint alleges that defendants made false and/or misleading statements and/or failed to disclose to investors: (1) that the Company overstated its 2014 Average Revenue per Subscriber and organic growth rate; (2) that the Company engaged in irregular accounting practices related to its international business; and (3) that, as a result of the foregoing, the Company’s statements about its business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
On April 28, 2015, Gotham City Research LLC published a report alleging, among other things, that 40% to 100% of Endurance’s reported profits were suspect and that the Company’s normalized profits would be insufficient to cover its interest expenses. The report alleged that the Company uses related parties to inflate earnings, and that various accounting irregularities relating to the Company’s international business existed. The report also alleged that the Company’s reported organic growth rate was overstated and that 2014 Average Revenue per Subscriber (“ARPS”) had actually declined 13% when the Company’s 10-K claimed that ARPS had grown 11%. Following this news, shares of Endurance declined over 10%, to close on April 28, 2015, at $19.70 per share, on unusually heavy volume.
If you purchased Endurance shares during the Class Period you have until July 3, 2015 to file a motion to be appointed class representative. If you have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to firstname.lastname@example.org, or visit our website at http://www.howardsmithlaw.com.
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