GPM Announces Expanded Investigation of Constant Contact, Inc.

LOS ANGELES--()--Glancy Prongay & Murray LLP (“GPM”) announces that it has expanded its investigation into potential claims on behalf of investors of Constant Contact, Inc. (“Constant Contact” or the “Company”) (NASDAQ: CTCT) concerning the recent disclosures regarding its lackluster earnings, and the Company’s and its officers’ possible violations of federal securities laws. Constant Contact’s investors are encouraged to contact GPM to discuss the alleged wrongdoing, and steps investors can take to recover any losses caused by the Company’s alleged fraud. The expanded investigation includes claims that the Company’s recent financial disclosures reveal further alleged securities fraud.

Constant Contact assists small and medium size organizations through a suite of online marketing tools. On April 30, 2015, after the market close, the Company posted results that fell below expectations. Amongst other issues, Constant Contact announced revenue of $90.4 million, that fell below analysts’ expectations of $91.1 million. In connection with the Company’s poor results, CEO Gail Goodman stated “[w]e were disappointed with the mixed results for the quarter, as revenue came in below expectations while profitability was better than expected. In the quarter we didn’t deliver an acceleration in customer additions as expected, which resulted in missing our revenue goal. Given the current trends, we are adjusting down our revenue plans for the remainder of the fiscal year.” On this news Constant Contact shares fell over 21%, or $7.34 per share to close on May 1, 2015 at $27.51 per share.

On July 23, 2015, after the market closed, the Company posted earnings results for the second quarter of 2015 and lowered revenue outlook for the third quarter based on issues such as a sharp swing in product mix with 80 percent customers buying stand-alone email, as well as depressed trial-to-conversion rates during April and May. On this news, Constant Contact shares dropped at least 18%, setting new 52-week lows in the process, during intraday trading on July 24, 2015.

If you purchased shares of Constant Contact, 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 Casey Sadler of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to shareholders@glancylaw.com, or visit our website at http://www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.

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Contacts

Glancy Prongay & Murray LLP, Los Angeles
Casey Sadler, 310-201-9150 or 888-773-9224
shareholders@glancylaw.com
www.glancylaw.com

Release Summary

GPM announces expanded investigation on behalf of Constant Contact investors.

Contacts

Glancy Prongay & Murray LLP, Los Angeles
Casey Sadler, 310-201-9150 or 888-773-9224
shareholders@glancylaw.com
www.glancylaw.com