MaxPoint Interactive, Inc.

Robbins Arroyo LLP: MaxPoint Interactive, Inc. (MXPT) Misled Shareholders According to a Recently Filed Class Action

Robbins Arroyo LLP announces that a securities fraud class action complaint was filed in the U.S. District Court for the Southern District of New York. The complaint alleges that officers and directors of MaxPoint Interactive, Inc. (NYSE: MXPT) violated the Securities Act of 1933. The class action is filed on behalf of those who purchased MaxPoint securities pursuant to the company’s Registration Statement and Prospectus issued in connection with its initial public offering (“IPO”) on March 6, 2015. MaxPoint Interactive provides digital advertising services in the United States.

MaxPoint Fails to Disclose Material Facts in its Registration Statement

According to the complaint, MaxPoint’s Registration Statement contained untrue statements of material facts and was not drafted in accordance with the rules governing its preparation. Specifically, the Registration Statement failed to disclose that MaxPoint was wholly dependent upon its top 50 customers alone for two-thirds of its sales, leaving the company more exposed to the budgetary constraints and spending priorities of just 50 customers, resulting in lower trailing twelve-month average spending per customer growth. Further, MaxPoint’s new customers during the first half of 2015 started with smaller budgets and were smaller companies than many of the enterprise customers who had been signed prior to the IPO.

Although MaxPoint was required to disclose that it was more exposed to customers’ budgetary proclivities due to high customer concentration and that it had been signing smaller customers in the months leading up to the IPO, its Registration Statement contained no such disclosures. During its IPO, MaxPoint sold 6.5 million shares of common stock to the public at $11.50 per share, raising $74.75 million in gross proceeds. However, it closed at $4.51 per share on September 1, 2015, an approximately 60% decline from the IPO price.

MaxPoint 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.

 

Shareholder Information

Items marked with an asterisk (*) are required information.

First Name * Last Name *
Address City State/Province *
ZIP/Postal Code Country/Region Phone *
E-mail * Confirm: E-mail *

Shares Purchased:
Number of Shares: Buy Date : Price Per Share:
example: 125 example: MM/DD/YYYY example: 30.00
transaction:
transaction:
transaction:
transaction:
transaction:
If you have additional transactions or comments, please input the information below:

Shares Sold:
Number of Shares: Sell Date : Price Per Share:
example: 125 example: MM/DD/YYYY example: 30.00
transaction:
transaction:
transaction:
transaction:
transaction:
If you have additional transactions or comments, please input the information below:

Please Note: Neither the submission to nor the receipt of information by Robbins Arroyo LLP or one of its attorneys through this website constitutes an agreement by our firm to represent the individual and does not create an attorney-client relationship. Please do not send confidential or sensitive information through this website. This information should be communicated through a direct contact with an individual at the firm.

* I have read the disclaimer information
+=

    Send This Post

    Tags: