Yahoo is the subject of a civil suit alleging "operational deficiencies" in the firm's ad-serving technology caused Yahoo to lose market share and push down its stock price
Yahoo is the subject of a civil suit alleging "operational deficiencies" in the firm's ad-serving technology caused Yahoo to lose market share and push down its stock price.
The complaint says "Yahoo’s stock rose precipitously on defendants’ positive statements concerning Yahoo’s sales growth, record reported revenues and earnings and strong business fundamentals" and the shares rose to over $43 per share on January 6, 2006.
"However, concealed from investors was the fact that due to operational deficiencies in its ad technology, Yahoo was rapidly losing market share to Google and other search engines and Web destinations that would significantly undermine its revenues, earnings and value," the suit by Lerach Coughlin Stoia Geller Rudman & Robbins LLP states. The firm is seeking class-action status on behalf of a wide class of shareholders.
On July 19, 2006, Yahoo's stock price fell 22 percent after the company announced second-quarter 2006 financial results that were lower than investors expected and analysts downgraded the shares, erasing billions of dollars in market capitalization, according to the suit.
The complaint presents a laundry list of Yahoo's alleged failings. Suits like these appeared by the hundreds after the dotcom bubble burst. Many companies agreed to settlements rather than go through the expense of a defense.
An e-mail to Yahoo's media relations staff seeking comment wasn't immediately returned.
What's New for 2015?
You spoke, we listened! ClickZ Live New York (Mar 30-Apr 1) is back with a brand new streamlined agenda. Don't miss the latest digital marketing tips, tricks and tools that will make you re-think your strategy and revolutionize your marketing campaigns. Super Saver Rates are available now. Register today!
Singapore, 3-4 November
Hong Kong, 8-9 December
Hong Kong, 8-9 December
Google My Business Listings Demystified
To help brands control how they appear online, Google has developed a new offering: Google My Business Locations. This whitepaper helps marketers understand how to use this powerful new tool.
5 Ways to Personalize Beyond the Subject Line
82 percent of shoppers say they would buy more items from a brand if the emails they sent were more personalized. This white paper offer five tactics that will personalize your email beyond the subject line and drive real business growth.
December 9, 2014
1:00pm ET/10:00am PT