An investigation on behalf of investors in shares of Motricity, Inc (NASDAQ: MOTR) over possible violations of Federal Securities Laws by Motricity was announced.

The investigation by a law firm focuses on possible shareholder claims based on potential violations of the federal securities laws in connection with certain financial statements. Specifically the investigation concerns whether Motricity, Inc or others may have violated securities laws by issuing a series of statements regarding its business, its prospects and its operations that were materially false and misleading at the time they were made.
Motricitys annual Total Revenue rose from $35.17million in 07 to $133.38million in 2010. However Motricity was not able to report any Net Income but rather a Net Loss over the same time frame. Additionally, even though Motricitys first quarter Revenue in 2010 rose from $29.08million a year earlier to $32.21million for the first quarter in 2011, its quarterly Net Loss increased from a Net Loss of $1.53million to a Net Loss of $6.14million for the first quarter in 2011.

Shares of Motricity, Inc (Public, NASDAQ:MOTR) rose from as low as $6.80 per share to over $30 during November 2010, but then fell to recently $8.20 per share.