comScore, Inc. Securities Litigation
|Court:||U.S. District Court for the Southern District of New York|
|Judge:||The Hon. John G. Koeltl|
|Class Period:||05/ 5/2015 - 03/ 7/2016|
|Case Contacts:||John C. Browne, Jai K. Chandrasekhar, David Schwartz, Jesse Jensen|
This is a securities fraud class action filed on behalf of a class of persons and entities who purchased or acquired comScore, Inc. (“comScore” or the “Company”) securities between May 5, 2015 through March 7, 2016, inclusive (the "Class Period"). This action alleges that comScore—a provider of data, metrics, products and services to clients in the media, advertising, and marketing industries—and certain of its senior officers (collectively, “Defendants”) defrauded investors by engaging in an accounting fraud that resulted in the overstatement of revenue and other important financial metrics.
Plaintiffs claim that throughout the class period, comScore made materially false and misleading statements to investors by reporting positive financial results, touting “record refunds, strong profitability and net income from operations,” and assuring investors that adequate financial and disclosure controls and procedures were in place to ensure the accuracy of its financial statements. However, the truth about the Company’s fiscal position and its fraudulent accounting practices began to unfold following comScore’s March 7, 2016 announcement that it would not file its Form 10-K due to an internal review of its financial statements by its Audit Committee and independent public accountants initiated after receiving “a message regarding certain potential accounting matters.” The company also suspended its share repurchase program.
This news rattled investors and caused the price of comScore stock to fall $13.67 per share, or 33.5%, to close at $27.04 per share on March 7, 2016. On July 19, the Court appointed the Fresno County Employees’ Retirement Association and the Employees’ Retirement System of the City of Baton Rouge and Parish of East Baton Rouge as lead plaintiff in this action and approved Bernstein Litowitz Berger & Grossmann LLP to serve as lead counsel for the class.