Wites Law Firm announces their investigation of Tremor Video Inc. (NYSE: TRMR). On or about June 27, 2013, Tremor Video raised approximately $75 million in gross proceeds by selling 7.5 million shares at $10 per share in an Initial Public Offering (“IPO”). On November 7, 2013 after the market closed, Tremor Video reported its third quarter 2013 financial results. The Company disclosed that in the third quarter 2013 its revenue was $35.3 million and its net loss was $2.2 million. Following this news, the Company’s common stock declined by $4.54 per share, more than 49%, to close at $4.72 per share.
A complaint has been filed in the United States District Court for the Southern District of New York against Tremor Video, certain officers and directors of the Company, and the underwriters of the IPO. Among other things, the action alleges that the Registration Statement issued in connection with Tremor Video’s IPO contained untrue statements of material facts or omitted to state other facts necessary to make the statements made not misleading. More specifically, the complaint alleges that the defendants failed to disclose certain facts which existed at the time of the IPO, such as that the online advertising market had materially shifted towards mobile browsing, as opposed to desktop browsing, where Tremor Video was at a significant disadvantage to its competitors, and that Tremor Video was losing sales to competitors as a result of inferior mobile browsing capabilities.
If you are an investor who purchased Tremor Video stock you may have a legal claim against the Company and could serve as the lead plaintiff in a class action lawsuit. The deadline to file a motion for appointment as the lead plaintiff is January 21, 2014. If you are interested in being the lead plaintiff, or would like to speak with an attorney about your legal rights, contact the attorneys at Wites Law Firm by email at info@witeslaw.com or toll-free at 1 (866) 277-8631.
