NEW YORK--(BUSINESS WIRE)--The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of those who acquired Meredith Corporation (“Meredith” or the “Company”) (NYSE: MDP) securities during the period from May 10, 2018 and September 4, 2019 (the “Class Period”). Investors have until November 5, 2019 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that Meredith failed to disclose that: (i) the Time, Inc. acquisition was not as profitable as the Company had claimed; (ii) that the Company would incur additional costs for strategic investments to improve the Time business; (iii) that, as a result, the Company’s earnings would be materially and adversely impacted; and (iv) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
On September 5, 2019, the Company reported expected fiscal 2020 adjusted EBITDA in the range of $640 million to $675 million, which was well below analysts’ expectations of $793 million. Meredith planned to increase spending to improve operations of Time Inc., which the Company had acquired for $1.8 billion, because the business was not as profitable as expected.
On this news, Meredith’s shares fell from $43.82 on September 4, 2019 to a close of $33.68 on September 5, 2019 (a decline of $10.14 or approximately 23%).
If you acquired Meredith securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at firstname.lastname@example.org, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, and whistleblower litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: www.kmllp.com.
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