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.
This Year's Premier Digital Marketing Event is #CZLSF
ClickZ Live San Francisco (Aug 11-14) brings together the industry's leading practitioners and marketing strategists to deliver 4 days of educational sessions and training workshops. From Data-Driven Marketing to Social, Mobile, Display, Search and Email, this year's comprehensive agenda will help you maximize your marketing efforts and ROI. Register today!
Customer loyalty is imperative to success, but fostering and maintaining loyalty takes a lot of work. This guide is here to help marketers build, execute, and maintain a successful loyalty initiative.
Latest research reveals 68% higher revenue per conversion for marketers who integrate their search & social advertising. In addition to the research results, this whitepaper also outlines 5 strategies and 15 tactics you can use to better integrate your search and social campaigns.
August 21, 2014