NEW YORK--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP (http://www.rgrdlaw.com/cases/meredith/) today announced that a class action has been commenced on behalf of purchasers of Meredith Corporation (NYSE:MDP) securities during the period between January 31, 2018 and September 5, 2019 (the “Class Period”). This action was filed in the Southern District of Iowa and is captioned Mroz v. Meredith Corp., No. 19-cv-0294.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Meredith securities during the Class Period to seek appointment as lead plaintiff. A lead plaintiff acts on behalf of all other class members in directing the litigation. The lead plaintiff can select a law firm of its choice. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from September 6, 2019. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, David A. Rosenfeld or Mary K. Blasy of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at email@example.com or firstname.lastname@example.org. You can view a copy of the complaint as filed at http://www.rgrdlaw.com/cases/meredith/.
The complaint charges Meredith and certain of its officers and/or directors with violations of the Securities Exchange Act of 1934. Meredith is a media company that operates national media and local media business segments over print, digital, mobile, video, and broadcast television. On January 31, 2018, Meredith announced it had completed the acquisition of Time, Inc. for $2.8 billion.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements and/or failed to disclose adverse information regarding the Company’s business and operations. Specifically, defendants failed to disclose: (i) that the Company’s financial reporting was deficient in its controls for establishing the fair value of the assets and liabilities that Meredith had acquired from Time; (ii) that integrating Time’s assets and elevating advertising revenue from the print and digital performance of Time’s assets would occur over a series of years and require additional investment spending; and (iii) that the substantial number of low-margin magazine subscriptions inside the legacy Time brands would require additional investment spending. As a result of this information being withheld from the market, Meredith securities traded at artificially inflated prices during the Class Period.
Then on September 5, 2019, when Meredith announced its fourth quarter and full year 2019 financial results, it admitted that it had “taken longer than [it] initially expected to elevate the print and digital performance of the Time Inc. assets,” and that “comparable advertising performance lagged Meredith’s expectations in the first half of fiscal 2019.” In a conference call the same day, the Company’s CEO explained that due to the underperformance of the Time assets, Meredith had significantly missed its previously announced guidance. On this news, the price of Meredith stock fell more than 20%, to close at $33.68 per share on September 5, 2019.
Plaintiff seeks to recover damages on behalf of all purchasers of Meredith securities during the Class Period (the “Class”). The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For six consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry. Please visit http://www.rgrdlaw.com for more information.