LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay & Murray LLP, representing investors of Endurance International Group Holdings, Inc. (“Endurance” or the “Company”) (NASDAQ: EIGI), has filed a class action lawsuit 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”).
Please contact Casey Sadler, Esquire or Lesley Portnoy, Esquire at (310) 201-9150, or at email@example.com to discuss this matter. If you inquire by email, please include your mailing address, telephone number and number of shares purchased.
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 are a member of the Class described above, you may move the Court, no later than 60 days from the date of this Notice, to serve 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 inquire via email, please include your mailing address, telephone number, and number of shares purchased.
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