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If you are purchased shares of Travelzoo Inc. (NASDAQ: TZOO) prior to April 2011 and presently continue to hold those NASDAQ TZOO shares, you have certain options and you should contact the Shareholders Foundation, Inc.
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To have your information reviewed for options and to receive notifications about this investigation, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Investigation Overview
San Diego, Aug 22, 2011 (Shareholders Foundation) -- An investigation on behalf of current long term investors of Travelzoo Inc. (NASDAQ: TZOO) over possible breaches of fiduciary duties by certain directors and officers of Travelzoo was announced.
The investigation for investors who purchased their TZOO shares prior to April 2011 and current hold those TZOO shares follows a lawsuit filed for only investors who purchased TZOO common stock between the time frame of April 21, 2011 and July 21, 2011.
The investigation by a law firm on behalf of current long term investors in stock Travelzoo Inc. (NASDAQ: TZOO) concerns whether certain current and/or former officers and members of the Travelzoo board of directors can be held liable in connection with the alleged Securities Laws violations in the lawsuit by investors who purchased TZOO stock only between April 21, 2011 and July 21, 2011. According to that complaint filed in the U.S. District Court for the Southern District of New York the plaintiff alleges that Travelzoo Inc violated specifically the Securities Exchange Act of 1934 by issuing a series of allegedly materially false and misleading statements.
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. Since then TZOO stocks fell to a close of $32.55 on August, 19, 2011.
