Class Period: Aug 11, 2011 to Apr 9, 2012
Lead Plaintiff Deadline: Jul 16, 2012 + Deadline passed
Summary of Case:
A securities class action has been filed against AOL, Inc. ("AOL" or the "Company") on behalf of all person who sold the securities of AOL between August 11, 2011 to April 09, 2012. This case has been filed in the USDC - New York (Southern).
The Complaint alleges as follows: During the Class Period, as detailed herein, defendants engaged in a scheme to deceive the market developed a course of conduct that maintained an artificially low stock and operated as a fraud or deceit on Class Period sellers of AOL's stock by misrepresenting the Company's liquidity and future prospects. Over a period of approximately nine months, defendants improperly repressed the Company's stock price, allowing defendants to purchase over $178 million of the Company shares at artificially low prices. When defendants' prior misrepresentations and fraudulent conduct was revealed and apparent to investors, shares of AOL increased precipitously eliminating the prior artificial deflation in the price of AOL's shares. As a result, plaintiff and other members of the Class suffered economic losses, damages under the federal securities laws.
By improperly characterizing the Company's liquidity and future prospects, defendants presented a misleading image from which to value AOL securities. During the Class Period, defendants failed to disclose that they (a) had committed to a plan to sell AOL's valuable Patent Portfolio; (b) had initiated an active program to locate a buyer for the Patent Portfolio; and (c) were actively marketing the Patent Portfolio. Defendants' omissions caused and maintained an artificial value of AOL's stock price allowing defendants to purchase AOL stock at artificially low prices throughout the Class Period and until the truth was ultimately revealed to investors.
Defendants' false and materially misleading statements had the intended effect of causing AOL's shares to trade at artificial levels throughout the Class Period reaching a Class Period low of $11.25 per share onSeptember 22, 2011. Asa result, the Company was able to purchase AOL stock at artificially low prices.
On April 9, 2012, however, as investors learned the truth about the Company, and learned that defendants had failed to disclose the value of its Patent Portfolio and its intent sell it, shares of the Company skyrocketed. Defendants' belated disclosures had an immediate and positive impact on the price of AOL shares.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.