We represent the fire and police pension systems of Los Angeles in securities class action litigation against financial information company Bankrate, Inc. (Bankrate). Our clients allege that between October 27, 2011 and October 9, 2014, Bankrate issued materially false and misleading statements that artificially inflated its financial metrics. In addition, Bankrate incorporated the misstatements by reference in documents underlying a March 2014 public offering of 16 million shares of common stock. When the misrepresentations came to light, Bankrate stock prices dropped by more than 30 per cent. The case is pending in federal district court in Florida.
In May 2016, the parties reached an agreement in principal to settle this matter for $20 million on the basis of a mediator’s recommendation. On July 18, 2016, we filed papers seeking the court’s preliminary approval of the settlement. We expect the court will hold a final settlement approval hearing before the end of the year.