Robbins Arroyo LLP: comScore, Inc. (SCOR) Misled Shareholders According to a Recently Filed Lawsuit
Robbins Arroyo LLP announces that a lawsuit was filed on behalf of comScore, Inc. (NASDAQGS: SCOR) in the U.S. District Court for the Southern District of New York. The plaintiff brings the complaint on behalf of comScore against the members of its current board of directors and certain of its current and/or former senior directors and executives, for alleged violations of federal and state law. comScore provides digital media analytics products and services for content publishers, advertisers, advertising agencies, and network operators primarily in the United States, Canada, Europe, Latin America, and Asia.
comScore Officials Accused of Breaching Their Fiduciary Duties
According to the complaint, since 2013, comScore officials engaged in a scheme to overstate the company’s publicly reported financial results in violation of Generally Accepted Accounting Principles (“GAAP”) and to operate without effective internal controls to facilitate the false reporting. In addition, comScore’s scheme allegedly enabled it to file false and misleading statements with the U.S. Securities and Exchange Commission and to permit certain of its current and former executives to profit from the misconduct. In fact, the complaint alleges that comScore officials improperly booked more than $43 million in revenue from nonmonetary transactions. Further, comScore’s overstatement of its billings and revenue growth caused a dramatic increase in the price of comScore’s stock. While in possession of material non-public information, certain comScore officials sold more than $78.3 million of their personally held shares at those artificially inflated prices.
In February 2016, comScore’s Audit Committee announced that it was initiating an investigation into the company’s accounting after receiving tips concerning possible accounting malfeasance. Then, on September 15, 2016, comScore announced that all of its previously issued financial statements for fiscal years 2013 and 2014, as well as the first three interim reporting periods of 2015, could no longer be relied upon and had to be restated because they erroneously recognized revenue from nonmonetary transactions that should never have been recognized in violation of GAAP. Then, in November 2016, several company officials inexplicably resigned from their positions. comScore later announced that its investigation had identified concerns regarding internal control deficiencies and the sufficiency of public disclosures made by the company about certain performance metrics, among other things.
comScore 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.