Following a recent sharp stock price decline an investigation on behalf of investors in WebMD Health Corp. (NASDAQ: WBMD) shares over potential Federal Securities Laws violations was announced.

The investigation by a law firm focuses on whether a series of statements made between February 23, 2011 and July 15, 2011, inclusive, regarding WebMD Healths business, its prospects and its operations were materially false and misleading at the time they were made.

WebMD Healths 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. Furthermore shares of WebMD Health Corp. (NASDAQ: WBMD) increased from as low as $15.18 in October to as high as $57.87 in April 2011.However, NASDAQ: WBMD stock fell sharply from $46.48 on July 15, 2011 to $31.70 on Monday July 18, 2011.
Specifically, the investigation focuses on, among other things, whether WebMD knew but failed to adequately disclose certain problems it was experiencing generating advertising revenue.

On July 18, 2011, 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.