Aug. 27, 2012 (Shareholders Foundation) -- An investigation on behalf of investors of Demand Media Inc (NYSE:DMD) shares, who purchased their NYSE:DMD shares in or close to the initial public offering on January 26, 2011, was announced over potential securities laws violations by Demand Media Inc and certain of its directors and in connection with certain statements in the initial public offering.

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

Demand Media Inc (NYSE:DMD) went public with its initial public offering (IPO) on January 26, 2011.
The investigation says that prior to January 26, 2011, Google announced it was already implementing changes to its search engine methodology and therefore concerns whether Demand Media Inc properly disclosed business risks and other potential problems in the registration statements and prospectus it issued in connection with its January 26, 2011 IPO of NYSE:DMD common stock.
Demand Media Inc (NYSE:DMD) reported that its annual Revenue rose from $170.25 million in 2008 to $324.87 million in 2011. However its Net Loss increased from $14.90 million in 2008, respectively $5.33 million in 2010, to $18.52 million in 2011.

Shares of Demand Media Inc (NYSE:DMD) rose to as high as $24.23 per share on April 1, 2011, but fell in February 2012 to as low as $6.17 per share.

On August 27, 2012, NYSE:DMD shares closed at $9.87 per share.