BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased SITO Mobile, Ltd. (“SITO” or the “Company”) (NASDAQ: SITO) securities between February 9, 2016 and January 2, 2017, inclusive (the “Class Period”). SITO investors have until April 18, 2017 to file a lead plaintiff motion.
Investors suffering losses on their SITO investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to email@example.com.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (1) SITO's development of bookings would not drive the Company's fourth fiscal quarter 2016 media placement revenues and revenue growth to the level represented during the Class Period; (2) SITO was aware that the election would impact its fourth fiscal quarter 2016 revenue, (3) clients' campaign spending and media placement revenues in the fourth quarter 2016 was highly dependent on the elections; (4) SITO's growth in media placement revenues would not occur in the fourth fiscal quarter 2016; (5) consequently, SITO's statements about its business, operations, and prospects were false and misleading and/or lacked a reasonable basis.
On January 3, 2017, SITO released discouraging quarterly revenue results for its preliminary media placement for the quarter ending December 31, 2016. SITO said its results were “negatively affected this year by restrained advertising spending during a period of heightened and elongated media focus on this year's U.S. election.” Jerry Hug, SITO's CEO, was quoted, “We clearly underestimated the effects of this year's election on our clients' campaign spending.” Despite a positive conference call in the third quarter where Hug told an analyst that there would not be a significant drop from the election, the discouraging results came shortly after the SITO's repeated hype and positive forecast. Following this news, SITO stock dropped 32% on January 3, 2017.
If you purchased shares of SITO during the Class Period you may move the Court no later than April 18, 2017 to ask the Court to appoint you as lead plaintiff if you meet certain legal requirements. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you 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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