LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay & Murray LLP announces that a class action has been filed on behalf of investors who purchased the securities of Constant Contact, Inc. (“Constant Contact” or the “Company”) (NASDAQ: CTCT) between October 23, 2014 and July 23, 2015, inclusive (the “Class Period”). The complaint alleges that the Company and its two top executives violated the federal securities laws. Investors who purchased or otherwise acquired securities of Constant Contact during the Class Period have 60 days from the date of this notice to file a motion to serve as lead plaintiff in the class action.
Constant Contact originated as an email marketing platform for small and midsize organizations. The Company has progressed to provide a suite of online marketing tools that are designed for small organizations, including small businesses, associations and non-profits.
The complaint alleges that the Company and its executives violated the federal securities laws by issuing misleading statements during the Class Period regarding Constant Contact’s business operations and financial performance. Specifically, defendants made false and/or misleading statements and/or failed to disclose: (1) that the Company’s gross customer additions were lower than expected; (2) that the Company was experiencing negative trends in customer conversion rates; (3) that the Company was steering new customers towards the lowest-priced packages; (4) that, as a result, the Company’s revenues for 2015 would be below expectations; and (5) that, as a result of the foregoing, Defendants’ statements about Constant Contact’s business operations and prospects were false and misleading and/or lacked a reasonable basis.
On July 23, 2015, after the market closed, the Company disclosed earnings results for the second quarter of 2015 with a weak third quarter outlook. Constant Contact experienced low trial-to-conversion rates in April and May of 2014 and a significant swing in product mix with approximately 80% of new customers choosing the lowest-priced Email package instead of higher-priced offerings. On this news, shares of Constant Contact declined $3.35 per share, over 11%, to close on July 24, 2015, at $26.18 per share, on unusually heavy volume.
If you purchased shares of Constant Contact during the Class Period, 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 email@example.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.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.