Levi & Korsinsky announces the commencement of a securities action in the Supreme Court for the State of New York on behalf of EverQuote, Inc. (NASDAQGM: EVER) shareholders who purchased shares pursuant to the June 2018 IPO.
According to the complaint, in June 2018, EverQuote held its IPO based on a misleading registration statement. EverQuote’s registration statement touted the company’s year-over-year and quarterly increases in both revenue and quote request volume, even though the company had strategized to lower its quote request volume to inflate other financial metrics ahead of the IPO.
EverQuote’s first public earnings report revealed that second quarter 2018 quote request volume had worsened to a year-over-year growth rate of only 2.3%—down from 14.3% touted in the registration statement—and to a quarterly decline of 12%. Then, in November 2018, EverQuote revealed that quote request volume had worsened to zero growth, causing the company’s stock to plummet dramatically.
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