Robbins Arroyo LLP: Textura Corporation (TXTR) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that an investor of Textura Corporation (NYSE: TXTR) has filed a federal securities fraud class action complaint in the U.S. District Court for the Northern District of Illinois. The complaint alleges that the company and certain of its officers and directors violated the Securities Exchange Act of 1934 between August 7, 2013 and September 29, 2014. Textura provides business collaboration software solutions to the commercial construction industry in the United States and Canada.
Textura Is Accused of Overstating Its Financial Performance and Business Prospects
According to the complaint, shares of Textura first fell $6.44 per share, or approximately 17%, to close at $31.30 on December 26, 2013, following a report published by Citron Research alleging that the company’s financial performance, business prospects, and financial condition had been overstated. Specifically, the report revealed that among other things, Textura lied about its revenue growth and subscriber churn rates to the U.S. Securities and Exchange Commission in its original registration statement and failed to disclose revenues generated from referrals by a related party, Aon Risk Services Central, Inc. Citron Research released a subsequent report nine months later, on September 29, 2014, further alleging that Textura’s total addressable market is less than 1/10th of what the company claimed it to be, and that the company’s Construction Payment Management (“CPM”) program not only contributed a mere 5-6 basis points to total revenue rather than the 15 basis pointed Textura previously claimed, but that the new subcontractors entering the CPM system were non-fee paying. On this news, Textura shares declined an additional $2.51 per share, or over 8%, to close at $25.71 on September 29, 2014.
Textura 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.