SAN DIEGO & DES MOINES, Iowa--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that a purchaser of Meredith Corporation (NYSE: MDP) filed a class action complaint against the company for alleged violations of the Securities Exchange Act of 1934 between May 10, 2018 and September 4, 2019. Meredith is a media company that distributes content through print, digital, mobile, video, and broadcast television.
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Meredith Corporation (MDP) Accused of Misleading Shareholders
According to the complaint, in January 2018, Meredith acquired Time Inc. for $3.2 billion, touting that the merger of the two companies "positioned [it] for growth across industry-leading digital, television, print…and social platforms." Despite auspicious financial reports and promises of substantial growth throughout the relevant period, Meredith failed to disclose that the acquisition of Time was not as profitable as expected, and Meredith would have to incur additional costs for strategic investments to improve Time's business. As a result, Meredith's earnings were adversely affected and, on September 5, 2019, the Company announced that it expected fiscal 2020 adjusted EBITDA to be in the range of $640 million to $675 million, well below analysts' expectations of $793 million. On this news, Meredith's stock fell $10.14, over 23%, to close at $33.68 per share, and has yet to recover.
Meredith Corporation (MDP) Shareholders Have Legal Options
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Click here to receive free alerts from Stock Watch when companies engage in wrongdoing.
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