SOURCE: Izard Nobel LLP

August 12, 2011 17:44 ET

Izard Nobel LLP Announces Class Action Lawsuit Against Motricity, Inc.

WEST HARTFORD, CT--(Marketwire - Aug 12, 2011) - The law firm of Izard Nobel LLP, which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Western District of Washington on behalf of purchasers of the common stock of Motricity, Inc. ("Motricity" or the "Company") (NASDAQ: MOTR) traceable to the Company's offering of common stock on or about June 17, 2010 (the "Offering"), and purchasers of the common stock between June 18, 2010 and August 9, 2011, inclusive (the "Class Period").

The Complaint charges that Motricity and certain of its officers and directors violated the federal securities laws. Specifically, defendants failed to disclose negative trends in Motricity's business, including with Motricity's most important customers, and represented that Motricity would continue to prosper despite the increasing popularity of smartphones, which provide Internet access without Motricity's services. As a result of defendants' false statements, Motricity stock traded as high as $30.74 per share on November 9, 2010.

On May 3, 2011, Motricity announced first quarter 2011 financial results, reporting a net loss of ($6.1) million and revenue of $32.2 million. On this news, Motricity's stock dropped $1.82 to close at $10.99 per share on May 4, 2011. Then, on August 9, 2011, Motricity issued its second quarter 2011 financial results, reporting a net loss of ($4.3) million and revenue of $34.6 million. On this news, Motricity stock fell 50%.

If you are a member of the class, you may, no later than October 11, 2011, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.

While Izard Nobel LLP has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, and your rights, visit: www.izardnobel.com/motricity/, or contact Izard Nobel LLP toll-free: (800)797-5499, or by e-mail: firm@izardnobel.com. For more information about class action cases in general, please visit our website: www.izardnobel.com.

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