BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces an expanded investigation 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 Law Offices of Howard G. Smith 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 Constant Contact shares, 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 email@example.com, or visit our website at http://www.howardsmithlaw.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.