SOURCE: Bernstein Litowitz Berger & Grossmann LLP

October 10, 2013 18:04 ET

Bernstein Litowitz Berger & Grossmann LLP Announces Securities Class Action Suit Filed Against Bankrate, Inc. and Certain of Its Senior Executives

NEW YORK, NY--(Marketwired - Oct 10, 2013) - Bernstein Litowitz Berger & Grossmann LLP ("BLB&G") today announced that it has filed a securities class action lawsuit on behalf of its client the Arkansas Teacher Retirement System ("Arkansas Teacher") against Bankrate, Inc. ("Bankrate" or the "Company") (NYSE: RATE), certain of its senior executives and Directors, Apax Partners, and underwriters of the Company's securities (collectively "Defendants"). The action, which is captioned Arkansas Teacher Retirement System v. Bankrate, Inc., et al., No. 13-CV-7183 (S.D.N.Y.), asserts claims under Sections 11, 12(a)(2) and 15 of the Securities Act of 1933, 15 U.S.C. §§ 77k, 77l(a)(2) and 77o, and Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, 15 U.S.C. §§ 78j(b) and 78t(a), and SEC Rule 10b-5 promulgated thereunder, 17 C.F.R. § 240.10b-5 on behalf of investors who purchased or otherwise acquired Bankrate securities in or traceable to the Company's June 16, 2011 initial public offering, in a December 6, 2011 secondary offering, or on the open market during the period from June 16, 2011 through October 15, 2012 inclusive (the "Class Period").

The Complaint alleges that during the Class Period, Defendants violated provisions of the federal securities laws by issuing false and misleading press releases, financial statements, filings with the Securities and Exchange Commission ("SEC"), making false and misleading statements and omissions during investor conference calls, and selling the Company's shares in the IPO and secondary offering by means of false and misleading prospectuses. Bankrate is a publisher of personal finance information to consumers through Bankrate-owned websites. The Company generates revenues by connecting consumers to companies that offer financial products, such as insurance, credit cards, mortgages and bank deposits by selling leads to those companies. As alleged in the Complaint, Defendants misled investors regarding the quality of Bankrate's insurance leads. As a result of Defendants' false statements and omissions, Bankrate's securities traded at artificially inflated prices during the Class Period. After the market closed on October 15, 2012, the Defendants announced that the Company would not meet its earnings expectation for the third quarter of 2012 due to the quality of Bankrate's insurance leads.

If you wish to serve as lead plaintiff for the Class, you must file a motion with the Court no later than 60 days from today. Accordingly, the deadline for filing a motion for appointment as lead plaintiff is December 9, 2013. Any member of the proposed class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed class.

Arkansas Teacher is represented by BLB&G, a firm of over 100 attorneys with offices in New York, California, Louisiana, and Illinois. If you wish to discuss this Action or have any questions concerning this notice or your rights or interests, please contact Avi Josefson of BLB&G at 212-554-1493, or via e-mail at avi@blbglaw.com.

Since its founding in 1983, BLB&G has built an international reputation for excellence and integrity. Specializing in securities fraud, corporate governance, shareholders' rights, employment discrimination, and civil rights litigation, among other practice areas, BLB&G prosecutes class and private actions on behalf of institutional and individual clients worldwide. Unique among its peers, BLB&G has obtained several of the largest and most significant securities recoveries in history, recovering billions of dollars on behalf of defrauded investors. More information about BLB&G can be found online at www.blbglaw.com.

Contact Information

  • CONTACT:
    Avi Josefson
    Bernstein Litowitz Berger & Grossmann LLP
    1285 Avenue of Americas, 38th Floor
    New York, NY 10019
    (212) 554-1493