Federman & Sherwood Announces the Filing of a Securities Class Action Lawsuit against Endurance International Group Holdings, Inc.
Oklahoma City, OK (May 8, 2015) – On May 4, 2015, a securities class action lawsuit was filed in the United States District Court for the District of Massachusetts against Endurance International Group Holdings, Inc. (NASDAQ: EIGI). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is November 4, 2014 through April 27, 2015. More specifically, the Complaint alleges that defendants made false and/or misleading statements and/or failed to disclose to investors: (1) that the Company overstated its 2014 Average Revenue per Subscriber and organic growth rate; (2) that the Company engaged in irregular accounting practices related to its international business; and (3) that, as a result of the foregoing, the Company’s statements about its business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
According to the Complaint, on April 28, 2015, research firm Gotham City Research LLC published a report alleging, among other things, that 40% to 100% of Endurance's reported profits were suspect and the Company's normalized profits would be insufficient to cover its interest expenses. The report alleged that the Company uses related parties to inflate earnings, and that transactions with related entities have accounted for at least 16.5% of the Company's 2012-2014 Earnings Before Interest, Taxes, Depreciation and Amortization. The report also alleged that the Company's reported organic growth was overstated and that 2014 ARPS had actually declined 13% when the Company's 10-K claimed that ARPS had grown 11%. On this news, the Company’s shares declined to close at $19.70 per share on April 28, 2015, on heavy trading volume.
Plaintiff seeks to recover damages on behalf of all Endurance International Group Holdings, Inc. shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Friday, July 3, 2015 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.
To join this class action, click here to obtain an investor certification. Once complete, please email this form to email@example.com, fax to us at (405) 239-2112 or send by regular mail to Federman & Sherwood, 10205 North Pennsylvania Avenue, Oklahoma City, OK 73120, ATTN: Robin.
Posted on Fri, May 8, 2015
by Robin Hester filed under