The following statement was issued today by the law firm of Schiffrin Barroway Topaz & Kessler, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Central District of California on behalf of all purchasers of securities of ValueClick, Inc. ("ValueClick" or the "Company") from November 1, 2006 through July 27, 2007, inclusive (the "Class Period").
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 Schiffrin Barroway Topaz & Kessler, LLP (Darren J. Check, Esq. or Richard A. Maniskas, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@sbtklaw.com.
The Complaint charges ValueClick and certain of its officers and directors with violations of the Securities Exchange Act of 1934. ValueClick provides online advertising campaigns and programs for advertisers and advertising agency customers in the United States and Europe. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that certain of the Company's lead-generation practices violated the Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003 ("CAN-SPAM") and Federal Trade Commission ("FTC") Guidelines; (2) that the Company's use of long surveys to generate email addresses for resale violated industry standards; (3) that the Company lacked adequate internal and financial controls; and (4) that, as a result of the foregoing, the Company's statements about its financial well-being and future business prospects were lacking in any reasonable basis when made.
On May 18, 2007, the Company disclosed that the FTC was conducting an inquiry to determine whether the Company's "lead generation" activities violated the FTC Act or the CAN-SPAM Act. Specifically, the FTC was investigating certain of ValueClick's websites which promised consumers a free gift of substantial value, and the manner in which the Company diverted traffic to such websites, in particular through their use of email. On May 22, 2007, the Company disclosed that its lead generation activities accounted for more than 60 percent of the Company's quarterly Media segment revenue, and that the promotion-based sub-category of lead generation, the subject of the FTC inquiry, accounted for approximately 30 percent of its quarterly Media segment revenue.
Then on July 30, 2007, the Company announced disappointing quarterly financial results. The Company stated that its revenue results were negatively impacted by the Company's promotion-based business, which "suffered a downturn that began in late May and became more pronounced in June." As a result, the Company was forced to lower its yearly revenue guidance from $655 million to $665 million down to $645 million to $660 million. Additionally, the Company was forced to lower its earnings-per-share guidance for the year, from $0.79 to $0.81 down to $0.74 to $0.76. Upon the release of this news, the Company's shares declined $5.00 per share, or 19.2 percent, to close on July 30, 2007 at $21.01 per share, on unusually heavy trading.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin Barroway Topaz & Kessler which prosecutes class actions in both state and federal courts throughout the country. Schiffrin Barroway Topaz & Kessler 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 Schiffrin Barroway Topaz & Kessler or to sign up to participate in this action online, please visit www.sbtklaw.com
