Lawsuit Overview
February 13, 2017 - The court granted defendants' motions to dismiss and closed the case.
March 24, 2016 - Defendants filed motions to dismiss.
January 19, 2016 - The lead plaintiff filed an amended complaint.
November 18, 2015 - Lead plaintiff and lead counsel were appointed.
August 31, 2015 - An investor in shares of MaxPoint Interactive Inc (NYSE: MXPT) filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by MaxPoint Interactive Inc in connection with certain allegedly false and misleading statements made in connection with the initial public offering on or about March 6, 2015.
According to the complaint the plaintiff alleges on behalf of purchasers of the common stock of MaxPoint Interactive Inc (NYSE: MXPT) pursuant and/or traceable to the Company's initial public offering (the IPO ) on or about March 6, 2015, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that the Registration Statement used to conduct the IPO contained false and misleading statements regarding the Company's financial condition, business and prospects.
According to the complaint, MaxPoint Interactive Inc failed to disclose that it was deriving two-thirds of its sales from just 50 customers at the time of the IPO, and that as a result of this high customer concentration, it was more exposed to those 50 customers' budgetary proclivities and promotional activities.
The complaint also alleges that MaxPoint Interactive Inc had been signing smaller customers with smaller advertising budgets in the months leading up to the IPO, and that as a result, MaxPoint Interactive Inc's sales growth was declining at the time of the IPO, which would have a material impact on MaxPoint Interactive Inc's profitability.
Shares of MaxPoint Interactive Inc (NYSE: MXPT) declined from $9.93 per share in July 2015 to as low as $4.08 per share on August 26, 2015.