Gilman Law, LLP Announces a Securities Fraud Class Action Lawsuit Has Been Filed Against WebMD Health Corp. on Behalf of Stock Owners/Investors and Urges Investors to Inquire as to the Class Action Lawsuit Prior to the October 3, 2011 Lead Plaintiff Deadline
BOSTON, MA – Gilman Law LLP announces that a lawsuit seeking class action status has been filed in the United States District Court for the Southern District of New York on behalf of the purchasers of WebMD Health Corp. (“WebMD” or the “Company”) (NASDAQ: WBMD) who purchased shares between February 23, 2011 and July 15, 2011, inclusive (the “Class Period”).
The Complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company’s business and prospects. Specifically, defendants misrepresented and/or failed to disclose the following adverse facts: (i) that WebMD was experiencing sponsorship cancellations due to extended legal and regulatory reviews; (ii) that WebMD’s customers, including several consumer product companies, were delaying advertising on the Company’s website as a result of smaller advertising budgets; and (iii) as a result of the foregoing, defendants lacked a reasonable basis for their positive statements about the Company and its prospects.
As a result of Defendants’ misleading statements, shares of WBMD traded at artificially high price levels. On July 18, 2011, WebMD announced its preliminary second quarter financial results and lowered its financial guidance for 2011. Consequently, the price of WebMD stock fell $14.01 per share, or 40%, to close at $40.48 per share, on extremely heavy trading volume.
If you purchased or otherwise acquired WBMD shares during the Class Period, between February 23, 2011 and July 15, 2011, and either lost money on the transaction or still hold the shares, you may contact Gilman and Pastor by no later than October 3, 2011 to discuss your rights, including as to the recovery of your losses, or to obtain additional information, at www.investment-losses.com, by email at email@example.com or by calling toll-free (888)252-0048.
Gilman Law, 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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