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WebMD Health Corp. Investor Files Lawsuit Against Directors Over Alleged Breaches Of Fiduciary Duties

  • If you are purchased WebMD Health Corp. (NASDAQ: WBMD) shares prior to February 2011 and presently continue to hold those NASDAQ WBMD shares, you have certain options and you should contact the Shareholders Foundation, Inc.

  • To have your information reviewed for options and to receive notifications about this case, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.

Lawsuit Overview

Company
WebMD Health Corp.
Security
NASDAQ: WBMD

Case Name
WebMD Health Shareholder Derivative Action 09/02/2011
Type of Lawsuit
Stockholder Derivative Action
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Summary

San Diego, Sept. 6, 2011 (Shareholders Foundation) -- A current investor in WebMD Health Corp. (NASDAQ: WBMD) shares filed a lawsuit against directors of WebMD Health over alleged breaches of fiduciary duties.
The lawsuit by a current investor against the board of directors over alleged breaches of fiduciary duties follows a lawsuit filed earlier for stockholder who only purchased NASDAQ:WBMD stock between February 23, 2011 and July 15, 2011 over alleged violations of Federal Securities Laws by WebMD Health Corporation.
According to that complaint filed in the U.S. District Court for the Southern District of New York the plaintiff alleges that WebMD Health Corporation violated the Securities Exchange Act of 1934 by issuing allegedly materially false and misleading statements regarding WebMD Health’s business and prospects.

WebMD Health’s annual Total Revenue rose from $319.23million in 2007 to $534.52million in 2010 and its Net Income rose from $30.63million in 07 to $52.27million in 2010. Additionally its first quarter Revenue increased from $108.03million a year ago to $131.61million and its first quarter Net Income rose from a first quarter Net Loss of $3.81million for the first quarter in 2010 to a first quarter Net Income of $19.55million in 2011. Shares of WebMD Health Corp. (NASDAQ: WBMD) increased from as low as $15.18 in October 2008 to as high as $57.87 in April 2011.

However, NASDAQ: WBMD stock fell sharply from a close of $46.48 on July 15, 2011 to as low as $31.66 on July 18, 2011 after WebMD Health Corp. (Nasdaq: WBMD), announced its preliminary financial results for the three months ended June 30, 2011 and lowered its financial guidance for 2011.

WebMD Health Corp said that it now expects for 2011 an annual Revenue of $580 million to $600 million compared to 610 million to $640 million previously announced. WebMD Health Corp also cut its expected 2011 annual Income from continuing operations from between $79.8 million and $91.8 million to $71 million to $80 million.

NASDAQ: WBMD stocks continued to trade for the most parts of the rest of July and August under $34 per share and closed recently at $33.37 per share.