BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that it is investigating potential claims on behalf of investors of Bankrate, Inc. (“Bankrate” or the “Company”) (NYSE:RATE), concerning possible violations of federal securities laws. The investigation is focused on certain statements issued by the Company concerning Bankrate’s operations and financial performance. Bankrate publishes, aggregates and distributes personal finance content on the Internet.
The investigation is related to the Company’s September 15, 2014, disclosure that the Securities and Exchange Commission is conducting a formal investigation related to the Company’s financial reporting during 2012, with the principal focus on the quarters ending March 31, 2012 and June 30, 2012.
According to the Company, the investigation will examine “three accruals of revenue totaling approximately $781,000 in the aggregate and two adjustments to reduce accrued expenses totaling approximately $850,000 in the aggregate,” which were made during the close process for the second quarter of 2012. The investigation will also examine, among other things:
- the timing and classification of additional entries relating to certain expenses, expense accruals and credits in the second quarter and other periods in 2012.
- an entry originally made in the third quarter of 2011 establishing an allowance of $460,000 for anticipated customer credits in the Insurance business that was ultimately reversed in the first quarter of 2012.
- revenue and expense adjustments totaling $225,000 in May 2012 that were reversed in June 2012; and
- whether accounting entries in these periods may have improperly impacted the Company’s reported results, including relative to market expectations at such time.
The Company further disclosed that, in connection with the ongoing SEC investigation, on September 14, 2014, Bankrate’s Audit Committee concluded that the Company’s previously issued financial statements for fiscal years 2011, 2012 and 2013 should no longer be relied upon, pending a full internal review of these matters. Following these disclosures, Bankrate shares fell nearly 14% in intraday trading on September 15, 2014.
If you purchased Bankrate shares, if you have information or would like to learn more about these claims, 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 email@example.com, or visit our website at www.howardsmithlaw.com.