August 12, 2016 (Shareholders Foundation) - An investigation on behalf of investors of Connecture Inc (NASDAQ:CNXR) shares over potential securities laws violations by Connecture Inc and certain of its directors and officers in connection certain financial statements was announced.

The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Connecture Inc (NASDAQ:CNXR) concerning whether a series of statements by Connecture Inc regarding its business, its prospects and its operations were materially false and misleading at the time they were made.

Connecture Inc conducted its initial public offering in December 2014.

Shares of Connecture Inc (NASDAQ:CNXR) reached as high as $12.90 per share in April 2015.

On March 14, 2016, Connecture Inc reported its financial results for its fourth quarter and full year 2015. Connecture Inc reported that its annual Total Revenue rose from $84.58 million in 2014 to $95.85 million in 2015 and that its Net Loss declind from $10.16 million in 2103 to $7.34 million in 2015. Connecture Inc also issued its guidance for full year 2016 and said that it expects Total revenue to be in the range of $100.0 million to $110.0 million and its adjusted EBITDA to be in the range of $10.0 million to $15.0 million.

On May 9, 2016, Connecture Inc reported its financial results for its first quarter 2016. Among other things, Connecture Inc also reiterated its full year 2016 guidance for total revenues and adjusted EBITDA.

Then on August 8, 2016, Connecture Inc reported its financial results for the second quarter 2016 and lowered its full year 2016 guidance for total revenues to be in the range of $85.0 million to $88.0 million. Connecture Inc said that the lowered full year 2016 guidance was due primarily to: (1) year-to-date revenue results being below Connectures initial expectations; (2) reduced revenue expectations in Connectures Private Exchange business for the remainder of the year due to slower customer adoption of its solutions than originally anticipated; (3) the impact of certain of Connectures Enterprise/Commercial customers transitioning from maintenance of their existing platforms to upgrades to our newest platform on 2016 revenue; and (4) the impact of Connectures decision to reduce its focus on the State/Medicaid opportunity.
Shares of Connecture Inc (NASDAQ:CNXR) declined on August 10, 2016, to as low as $1.60 per share.