An investigation on behalf of investors in shares of Travelzoo Inc. (NASDAQ: TZOO) over possible Violations of Securities Laws by Travelzoo Inc and others was announced.

The investigation by a law firm focuses on possible shareholder claims based on potential violations of the federal securities laws. Specifically the investigation concerns whether Travelzoo 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.

Travelzoos annual Total Revenue rose from $78.90million for 2007 to $112.78million in 2010 and its Net Income increased from $9.11million for 2007, respectively a Net Loss of $4.12million for 2008 to a Net Income of $13.16million in 2010.

Shares of Travelzoo Inc. (Public, NASDAQ:TZOO) rose from as low as $4.23 in January 2009 to as high as $94.22 per share on April 21, 2011 and $87.79 per share on July 19, 2011.

Then on July 21, 2011, Travelzoo Inc. reported its second quarter 2011 Results. Even though Travelzoos second quarter Revenue increased from its first quarter Revenue 2011 of $36.96million and compared to its second quarter Revenue of $28.11million last year to a second quarter 2011 Revenue of $37.56million, Travelzoo Inc. reported earnings per share of $0.30, well below analysts' expectations of $0.39 per share.

Shares of Travelzoo Inc. (Public, NASDAQ:TZOO) fell from a close of $ 85.71 on July 20, 2011 to a close of $56 on July 21, 2011 and a close of $52.80 per share on July 29, 2011.