| Company: | Yahoo! Inc. |
| Ticker Symbol: | NASD: YHOO |
| Class Period:: | April 8, 2004 to July 18, 2006 |
| Date Filed: | May-14-07 |
| Lead Plaintiff Deadline: | Jul-10-07 |
| Court: | Central District, CA |
| Allegations: |
A class action has been commenced in the United States District Court for the Central District of California on behalf of purchasers of Yahoo! Inc. ("Yahoo!") (NASDAQ:YHOO) publicly traded securities during the period between April 8, 2004 and July 18, 2006 (the "Class Period").
The complaint charges Yahoo! and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Yahoo! is a leading global Internet brand and one of the most trafficked Internet destinations worldwide.
The complaint alleges that Yahoo!'s stock rose precipitously on defendants' positive statements concerning Yahoo!'s sales growth, record reported revenues and earnings and strong business fundamentals, which defendants stated would provide further stability and growth, reaching a Class Period high of 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.
On July 19, 2006, the Company's stock price fell precipitously by 22% on heavy volume after the Company announced second quarter 2006 financial results that were lower than investors had been led to expect and analysts downgraded Yahoo!'s stock, erasing billions of dollars in market capitalization.
According to the complaint, defendants' Class Period statements describing Yahoo!'s business model, financial results and continued sales and earnings growth potential were false and misleading as: (a) Yahoo! generated fraudulent revenue by deliberately misleading Internet advertising business customers to induce these customers to buy Yahoo! advertising products through deceptive means; (b) Yahoo! made false, misleading, and deceptive representations regarding its advertising technology and products to investors and potential investors, industry analysts, and customers to increase sales and stock prices; (c) Yahoo!'s false, deceptive, and misleading representations were material in that they had a natural tendency to influence, or were capable of influencing, purchasing decisions, and they related to the essential characteristics, quality, and/or nature of competing products and commercial activities, including relevance, potential click-throughs and quality; (d) Yahoo!'s advertising technology was operationally defective, causing its own advertising offerings to substantially under-perform those of its rivals; (e) whereas Yahoo!'s rivals were paying high-traffic vendors to route traffic through their Web sites, Yahoo! was charging large vendors for access and was dependent on that revenue to make its revenue targets, making Yahoo!'s Web site a less desirable location for vendors to drive traffic to; and (f) Yahoo! was losing market share to Google and other Internet search providers.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
The complaint charges Yahoo! and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Yahoo! is a leading global Internet brand and one of the most trafficked Internet destinations worldwide.
The complaint alleges that Yahoo!'s stock rose precipitously on defendants' positive statements concerning Yahoo!'s sales growth, record reported revenues and earnings and strong business fundamentals, which defendants stated would provide further stability and growth, reaching a Class Period high of 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.
On July 19, 2006, the Company's stock price fell precipitously by 22% on heavy volume after the Company announced second quarter 2006 financial results that were lower than investors had been led to expect and analysts downgraded Yahoo!'s stock, erasing billions of dollars in market capitalization.
According to the complaint, defendants' Class Period statements describing Yahoo!'s business model, financial results and continued sales and earnings growth potential were false and misleading as: (a) Yahoo! generated fraudulent revenue by deliberately misleading Internet advertising business customers to induce these customers to buy Yahoo! advertising products through deceptive means; (b) Yahoo! made false, misleading, and deceptive representations regarding its advertising technology and products to investors and potential investors, industry analysts, and customers to increase sales and stock prices; (c) Yahoo!'s false, deceptive, and misleading representations were material in that they had a natural tendency to influence, or were capable of influencing, purchasing decisions, and they related to the essential characteristics, quality, and/or nature of competing products and commercial activities, including relevance, potential click-throughs and quality; (d) Yahoo!'s advertising technology was operationally defective, causing its own advertising offerings to substantially under-perform those of its rivals; (e) whereas Yahoo!'s rivals were paying high-traffic vendors to route traffic through their Web sites, Yahoo! was charging large vendors for access and was dependent on that revenue to make its revenue targets, making Yahoo!'s Web site a less desirable location for vendors to drive traffic to; and (f) Yahoo! was losing market share to Google and other Internet search providers.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
