Levi & Korsinsky announces the filing of a class action lawsuit in the United States District Court for the District of Massachusetts on behalf of shareholders of Constant Contact, Inc. (NASDAQ: CTCT) who purchased shares between October 23, 2014 and July 23, 2015.
The complaint alleges that Constant Contact made false and/or misleading statements and/or failed to disclose that (a) Constant Contact’s gross customer additions were less than projected; (b) Constant Contact suffered negative trends in consumer conversion rates; and (c) the Company was directing new clients towards the cheapest packages. On July 23, 2015, Constant Contact announces its earnings results for the second quarter of 2015 and a weak third quarter outlook. The Company noted it experienced low trial-to-conversion rates in April and May of 2014 and a substantial swing in product mix with about 80% of new clients picking the cheapest package instead of more expensive options. Upon this news, shares of Constant Contact fell over 11% to close on July 24, 2015 at $26.18 per share. If you suffered a loss in Constant Contact you have until October 6, 2015 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn’t require that you serve as a lead plaintiff.
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