NEW YORK, Jan. 29, 2013 /PRNewswire/ -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC announces that a class action suit was filed in the United States District Court for the Eastern District of Virginia on behalf of purchasers of the common stock of VeriSign, Inc. ("VeriSign" or the "Company") (NasdaGS: VRSN) between June 25, 2012 and October 25, 2012, inclusive (the "Class Period").
According to the complaint, on October 25, 2012, after the close of trading, VeriSign shocked the market by disclosing that the DOJ was reviewing its domain name pricing arrangements and that it was now doubtful that review would be complete in time to allow the U.S. Commerce Department to renew its contract before it expired on November 30, 2012. VeriSign also disclosed that the Company's 3Q '12 sales had been negatively impacted by industry efforts to stymie unseemly business practices. As a result, Defendants lowered the Company's FY 2012 revenue outlook by $5 million, now stating revenue would not exceed $875 million. On this news, shares in VeriSign fell over 15%, closing at $39.39 per share on October 26, 2012.
The Complaint alleges that throughout the Class Period the Company and certain of its executive officers issued materially false and misleading statements regarding the Company's business, operations and prospects. Specifically, the Complaint alleges that defendants misrepresented and/or failed to disclose that: (1) challenges to the Company's registry pricing scheme made it more likely the U.S. Department of Justice and Department of Commerce would demand price concessions in exchange for leaving VeriSign in charge of operating the .com and .net networks; (2) the Company's growth in domain name registrations was declining; (3) VeriSign was relying heavily on revenues from "parking" websites and other lower-quality websites focused on drawing in and monetizing traffic, rather than in providing pertinent business leads; (4) defendants knew that Google and other Internet search engines had been improving the quality of their search results by adjusting their algorithms to lower the rankings of subpar-quality websites; (5) subpar domain name owners had stopped renewing their agreements with VeriSign as a result of the Internet search engine's efforts to discourage them by demonetizing their practices; and (6) as a result, defendants knew VeriSign's fiscal year 2012 earnings guidance was not attainable.
No Class has yet been certified in the above action. If you wish to review a copy of the Complaint, to discuss this action, or have any questions, please contact either Peretz Bronstein or Eitan Kimelman of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484 or via email [email protected]. Those who inquire by e-mail are encouraged to include their mailing address and telephone number. March 18, 2013 is the deadline for investors to seek a lead plaintiff appointment.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Eitan Kimelman, 212-697-6484
SOURCE Bronstein, Gewirtz & Grossman, LLC