Robbins Arroyo LLP: ChannelAdvisor Corporation (ECOM) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that an investor of ChannelAdvisor Corporation (NYSE: ECOM) has filed a federal securities fraud class action complaint in the U.S. District Court for the Southern District of New York. The complaint alleges that the company and certain of its officers and directors violated the Securities Exchange Act of 1934 between November 6, 2014 and January 12, 2015. ChannelAdvisor provides cloud-based e-commerce solutions that allow retailers and manufactures to increase global sales.
ChannelAdvisor Misrepresents its Business Prospects
According to the complaint, shares of ChannelAdvisor fell $11.32 per share, or more than 53%, to close at $9.83 per share on January 13, 2015, following the January 12, 2015 release of the company’s preliminary fourth quarter 2014 revenue results. Specifically, ChannelAdvisor lowered its expected revenue from a previous range of $25.6 – $26.1 million to $23.7 million. The complaint further alleges that ChannelAdvisor knew and failed to disclose that: (i) its customer base had shifted from smaller clients to larger clients that in turn negatively impacted the revenue generated from its variable subscription, posing a risk to ChannelAdvisor’s financial performance; and (ii) larger clients were given a discount in the percentage of its gross merchandise volume that goes to ChannelAdvisor for variable subscriptions, further lowering the company’s revenue.
ChannelAdvisor Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.