Robbins Geller Rudman & Dowd LLP Files Class
Action Suit against Motricity, Inc.
August 12, 2011 02:50 PM Eastern Daylight Time
SAN DIEGO--(EON: Enhanced Online News)--Robbins Geller Rudman & Dowd LLP (“Robbins Geller”)
(http://www.rgrdlaw.com/cases/motricity/) today announced that a class action has been commenced in the United
States District Court for the Western District of Washington on behalf of purchasers of Motricity, Inc. (“Motricity”)
(NASDAQ:MOTR) common stock during the period between June 18, 2010 and August 9, 2011, inclusive (the
“Class Period”), and/or who acquired shares of Motricity common stock pursuant or traceable to the Company’s
June 17, 2010 initial public offering (“IPO”).
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to
discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s
counsel, Darren Robbins of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org.
If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at
http://www.rgrdlaw.com/cases/motricity/. Any member of the putative class may move the Court to serve as lead
plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges Motricity and certain of its officers and directors with violations of the Securities Act of 1933
and the Securities Exchange Act of 1934. Motricity provides mobile data solutions that enable wireless carriers to
deliver mobile data services to their subscribers in the United States, the United Kingdom, the Netherlands, and
On June 17, 2010, Motricity filed a Registration Statement with the SEC to facilitate the offering of 6 million shares
of Motricity common stock to the public. On June 18, 2010, Motricity announced the pricing of its IPO at $10 per
share for net proceeds of $51.4 million.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements
regarding the Company’s business prospects and financial results. Specifically, defendants failed to disclose negative
trends in Motricity’s business, including with Motricity’s most important customers, and represented that the
Company would continue to prosper despite the increasing popularity of smartphones, which provide Internet access
without Motricity’s services. As a result of defendants’ false statements, Motricity stock traded at artificially inflated
prices during the Class Period, reaching a high of $30.74 per share on November 9, 2010.
On May 3, 2011, Motricity issued a press release announcing its first quarter 2011 financial results. The Company
reported a net loss of ($6.1) million, or ($0.15) diluted earnings per share, and revenue of $32.2 million. On this
news, Motricity’s stock dropped $1.82 per share to close at $10.99 per share on May 4, 2011. Then, on August 9,
2011, Motricity issued its second quarter 2011 financial results, reporting a net loss of ($4.3) million, or ($0.09)
diluted earnings per share and revenue of $34.6 million. This result fell well short of Wall Street’s forecast. As a
result of this news, Motricity’s stock price fell, opening at $2.26 per share on August 10, 2011, a decline of 50% on
Plaintiff seeks to recover damages on behalf of all purchasers of Motricity common stock during the Class Period
(the “Class”) and/or who acquired shares of Motricity common stock pursuant or traceable to the Company’s June
17, 2010 IPO. The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class
actions and extensive experience in actions involving financial fraud.
Robbins Geller, a 180-lawyer firm with offices in San Diego, San Francisco, New York, Boca Raton, Washington,
D.C., Philadelphia and Atlanta, is active in major litigations pending in federal and state courts throughout the United
States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and
companies, as well as victims of human rights violations. The Robbins Geller Web site (http://www.rgrdlaw.com) has
more information about the firm.
Robbins Geller Rudman & Dowd LLP
Darren Robbins, 800-449-4900 or 619-231-1058