Robbins Arroyo LLP: comScore, Inc. (SCOR) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed against 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 all purchasers of comScore securities between May 5, 2015 and March 7, 2016, for alleged violations of the Securities Act of 1934 by comScore’s officers and directors. 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 Accused of Using Illegal Accounting Practices
According to the complaint, in May and August 2015, comScore issued press releases announcing strong revenues and financial performance for the first and second quarters of 2015, respectively. In November 2015, comScore announced third quarter 2015 results, stating that it delivered a solid quarter of record revenues and continued to see momentum in its advertising solutions. The complaint alleges, however, that comScore officials misled investors because they failed to disclose that the company’s accounting practices were not in compliance with U.S. Securities and Exchange Commission (“SEC”) regulations, that the company lacked adequate internal controls over accounting, and that it would be unable to file its Form 10-K for the fiscal year ended December 31, 2015, in a timely manner.
On February 29, 2016, comScore filed a Notification of Late Filing with the SEC disclosing that it would be unable to timely file its Annual Report on Form 10-K for the fiscal year ended December 31, 2015. comScore disclosed that the audit committee of the company’s board of directors received a message on February 19, 2016, regarding certain potential accounting matters, and that the committee commenced a review of the matters with the assistance of independent counsel and advisors. comScore said it expected to file the 10-K by March 15, 2016, after the audit committee’s review was complete. Then, on March 7, 2016, the company disclosed not only that it did not expect to meet its March 15, 2016 deadline, but also that it was suspending its share repurchase program “out of an abundance of caution.” On this news, comScore stock fell $13.67 per share, or 33.5%, to close at $27.04 per share on March 7, 2016.
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.