Gilman Law LLP Announces a Securities Fraud Class Action Lawsuit Has Been Filed Against Princeton Review, Inc. on Behalf of Stock Owners/Investors and Urges Investors to Inquire as to the Class Action Lawsuit Prior to the September 27, 2011 Lead Plaintiff Deadline
BOSTON, MA – Gilman and Pastor, LLP announces that a lawsuit seeking class action status has been filed in the United States District Court for the District of Massachusetts on behalf of the purchasers of Princeton Review, Inc. (“Princeton” or the “Company”) (NASDAQ: REVU) who purchased shares between March 12, 2009 and March 11, 2011, inclusive (the “Class Period”).
The Complaint alleges that Princeton violated federal securities laws by failing to disclose the following facts: (i) that the Company’s revenues and earnings were negatively impacted by increased competition in its marketplace, including from companies with lower cost offerings; (ii) that a number of significant operational problems existed at the Company that negatively impacted its business; (iii) that the Company had shifted its focus, and a significant amount of resources, away from its core higher education readiness and Penn Foster core businesses in pursuit of unproven projects to the detriment of its business, financial performance and prospects; (iv) that contrary to the Company’s public statements, the Company was not executing well on its turn-around plan; (v) that the Company had encountered significant problems in the higher education readiness business due to a product mix shift and increased competition; and (vi) that, as a result of the foregoing, defendants’ positive statements about the Company were lacking in a reasonable basis of fact and were materially false and misleading when made.
As a result of Defendants’ misleading statements, shares of REVU traded at artificially high price levels. On March 9, 2011, the Company announced that Princeton’s financial results for the full year 2010 was $50.4 million, compared to a loss of $13.9 million in 2009.
Consequently, following these announcements, the price of REVU stock declined 37.80% to $0.51 per share on March 10, 2011, and then declined another 23.53% on March 11, 2011, to close at $0.39 per share on very heavy volume.
If you purchased or otherwise acquired REVU shares during the Class Period, between March 12, 2009 and March 11, 2011, and either lost money on the transaction or still hold the shares, you may contact Gilman and Pastor by no later than September 27, 2011 to discuss your rights, including as to the recovery of your losses, or to obtain additional information, please complete the form below, email Kenneth Gilman at firstname.lastname@example.org or by calling toll-free (888)252-0048.
Gilman and Pastor, LLP is one of the country’s premier national law firms that represents institutional and individual investors in class actions, complex securities and corporate governance litigation. The firm has been a champion of investor rights for over 40 years and has been recognized for its reputation for excellence by the courts. You may retain Gilman and Pastor without financial obligation or cost to you, or you may retain other counsel of your choice.
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