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Shareholder Class Action Filed Against WebMD Health Corp. by The Law Firm of Kessler Topaz Meltzer & Check, LLP
Aug 26, 2011 (06:08 PM EDT)
RADNOR, Pa., Aug. 26, 2011 /PRNewswire/ -- The following statement was issued today by the law firm of Kessler Topaz Meltzer & Check, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Southern District of New York on behalf of purchasers of the securities of WebMD Health Corp. (NASDAQ: WBMD) ("WebMD" or the "Company"), who purchased or otherwise acquired WebMD securities between February 23, 2011 and July 15, 2011, inclusive (the "Class Period"). If you are a member of this class, you can view a copy of the Complaint or join this class action online at http://www.ktmc.com/cases/webmd/.
Members of the class may, not later than October 3, 2011, move the Court to serve as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision of whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP (Darren J. Check, Esq. or David M. Promisloff, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at email@example.com. For additional information about this lawsuit, or to join the class action online, please visit http://www.ktmc.com/cases/webmd/.
The Complaint charges WebMD and certain of its officers with violations of the Securities Exchange Act of 1934. WebMD is a provider of health information services to consumers, physicians and other healthcare professionals, employers and health plans through its public and private online portals and health-focused publications. More specifically, the Complaint alleges that the defendants failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that WebMD's customers, particularly consumer products companies, were postponing advertising on WebMD's website due to smaller advertising budgets; (2) that, because of extended regulatory and legal reviews, WebMD was experiencing sponsorship cancellations; (3) that the Company lacked adequate internal and financial controls; and (4) that, as a result of the foregoing, defendants' statements about the Company's business and prospects were lacking in any reasonable basis when made.
On July 18, 2011, the Company shocked investors when it drastically cut its fiscal year 2011 guidance. The Company reduced its anticipated revenue for 2011 down to between $580 million to $600 million from a previous range of between $610 million to $640 million, and reduced its anticipated income from continuing operations for 2011 down to between $71 million to $80 million from a previous range of between $79.8 million to $91.8 million. The defendants stated that the reductions were the result of several factors, including an extended internal legal and regulatory review of biopharmaceutical sponsorship programs in the consumer and professional markets, delays and cancellations in new consumer sponsorships, and lower licensing revenue as a result of low new customer additions. Upon the release of this news, shares of WebMD stock declined $14.00 per share, or over 30 percent, to close on July 18, 2011 at $32.48 per share, on unusually heavy trading volume.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Kessler Topaz Meltzer & Check, which prosecutes class actions in both state and federal courts throughout the country. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world.
For more information about Kessler Topaz Meltzer & Check, or for additional information about participating in this action, please visit www.ktmc.com.
SOURCE Kessler Topaz Meltzer & Check, LLP