INVESTOR ALERT: Class Action Lawsuit Against Bankrate, Inc. Announced by Law Offices of Howard G. Smith
Law Offices of Howard G. Smith announces that a class action lawsuit has been filed in the United States District Court for the Southern District of Florida on behalf of purchasers of the securities of Bankrate, Inc. (“Bankrate” or the “Company”) (NYSE:RATE) between March 1, 2013 and September 15, 2014, inclusive (the “Class Period”). Bankrate publishes, aggregates and distributes personal finance content on the Internet.
The Complaint alleges that the Company misrepresented and/or failed to disclose that Bankrate’s financial statements contained errors related to improper recognition of revenue and expenses, and the Company’s internal controls over financial reporting were inadequate.
On September 15, 2014, Bankrate disclosed that the Securities and Exchange Commission is conducting a formal investigation related to the Company’s financial reporting during 2012, with the principal focus on the quarters ending March 31, 2012 and June 30, 2012. According to the Company, the SEC investigation will examine “three accruals of revenue totaling approximately $781,000 in the aggregate and two adjustments to reduce accrued expenses totaling approximately $850,000 in the aggregate,” which were made during the close process for the second quarter of 2012. The investigation will also examine, among other things:
- the timing and classification of additional entries relating to certain expenses, expense accruals and credits in the second quarter and other periods in 2012.
- an entry originally made in the third quarter of 2011 establishing an allowance of $460,000 for anticipated customer credits in the Insurance business that was ultimately reversed in the first quarter of 2012.
- revenue and expense adjustments totaling $225,000 in May 2012 that were reversed in June 2012; and
- whether accounting entries in these periods may have improperly impacted the Company’s reported results, including relative to market expectations at such time.
The Company further disclosed that, in connection the ongoing SEC investigation, on September 14, 2014, Bankrate’s Audit Committee concluded that the Company’s previously issued financial statements for fiscal years 2011, 2012 and 2013 should no longer be relied upon, pending a full internal review of these matters. Following these disclosures, Bankrate shares fell nearly 14%, or $1.90 per share, to close at $11.92 per share on September 15, 2014.
If you are a member of the Class described above, you have until November 17, 2014, to move the Court to serve as lead plaintiff, if you meet certain legal requirements. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, Toll Free at (888) 638-4847, or by email to email@example.com, or visit our website at http://www.howardsmithlaw.com.
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