SOURCE: Izard Nobel LLP

August 03, 2011 16:58 ET

Izard Nobel LLP Announces Class Action Lawsuit Against WebMD Health Corp.

WEST HARTFORD, CT--(Marketwire - Aug 3, 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 Southern District of New York on behalf of purchasers of the common stock of WebMD Health Corp. ("WebMD" or the "Company") (NASDAQ: WBMD) between February 23, 2011 and July 15, 2011, inclusive (the "Class Period").

The Complaint charges that WebMD and certain of its officers and directors violated the federal securities laws by issuing materially false and misleading statements regarding the Company's business and prospects. Specifically, defendants misrepresented and/or failed to disclose the following adverse facts: (i) that WebMD was experiencing sponsorship cancellations due to extended legal and regulatory reviews; (ii) that WebMD's customers, including several consumer product companies, were delaying advertising on the Company's website as a result of smaller advertising budgets; and (iii) as a result of the foregoing, defendants lacked a reasonable basis for their positive statements about the Company and its prospects.

On July 18, 2011, WebMD announced its preliminary second quarter financial results and lowered its financial guidance for 2011. On this news, the price of WebMD stock fell $14.01 per share, or 30%, to close at $32.48 per share.

If you are a member of the class, you may, no later than October 1, 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/webmd/, 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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