Lawsuit Overview
April 6, 2016 - The court granted defendants' motion to dismiss.
September 28, 2015 - Defendants filed a motion to dismiss.
August 27, 2015 - The lead plaintiff filed an amended consolidated complaint.
July 2, 2015 - The case was transferred to the U.S. District Court for the Eastern District of North Carolina.
May 5, 2015 - Lead plaintiff and lead counsel were appointed and all cases were consolidated.
March 24, 2015 - Lead plaintiff motion was filed.
January 23, 2015 - An investor in shares of ChannelAdvisor Corporation (NYSE: ECOM) filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by ChannelAdvisor Corporation in connection with certain allegedly false and misleading statements made between November 6, 2014 and January 12, 2015.
According to the complaint the plaintiff alleges on behalf of purchasers of ChannelAdvisor Corporation (NYSE: ECOM) common shares between November 6, 2014 and January 12, 2015, that the defendants violated Federal Securities Laws.
More specifically, the plaintiff claims that between November 6, 2014 and January 12, 2015 the defendants allegedly concealed from the investing public that ChannelAdvisor Corporation’s shift in customer base away from smaller clients to larger clients posed a risk to ChannelAdvisor Corporation's financial performance as it impacts the revenue generated from its variable subscriptions, that larger clients were given a discount in the percentage of gross merchandise value ( GMV ) that goes to ChannelAdvisor Corporationp for variable subscription, which results in lower revenue for ChannelAdvisor Corporation, and that a result of defendants' alleged false and misleading statements, ChannelAdvisor Corporation’s stock traded at allegedly artificially inflated prices between November 6, 2014 and January 12, 2015.
On February 6, 2014, ChannelAdvisor Corporation announced its fourth quarter and full year 2013 financial results. ChannelAdvisor Corporation reported that its annual Total Revenue rose from $43.57 million in 2011 to $68.00 million in 2013 and that its respective Net Loss increased from $3.86 million to $20.63 million. Shares of ChannelAdvisor Corporation (NYSE: ECOM) $15 per share in June 2013 to as high as $48.41 per share in March 2014.
Then on January 12, 2015, ChannelAdvisor Corporation announced its preliminary fourth quarter 2014 revenue results. ChannelAdvisor Corporation said that based on information available as of the date of this release, ChannelAdvisor Corporation expects revenue for the fourth quarter of 2014 to be approximately $23.7 million, compared to the prior guidance of revenue in the range of $25.6 to $26.1 million. Shares of ChannelAdvisor Corporation (NYSE: ECOM) declined from $22.19 per share on January 12, 2015 to as low as 9.03 per share on January 13, 2015 and continued to decline to as low as $8.90 per share on January 22, 2015.