SOURCE: Kahn Swick & Foti, LLC

August 25, 2011 16:23 ET

Kahn Swick & Foti, LLC and Partner, Former Louisiana Attorney General, Charles C. Foti, Jr., Remind Investors With Large Trading Losses of Lead Plaintiff Deadline in Lawsuit Against Motricity, Inc. (Nasdaq: MOTR)

NEW ORLEANS, LA--(Marketwire - Aug 25, 2011) - Kahn Swick & Foti, LLC ("KSF") and KSF partner, the former Attorney General of Louisiana, Charles C. Foti, Jr., remind investors that they have until October 11, 2011 to file lead plaintiff applications in a securities class action lawsuit against Motricity, Inc. ("Motricity" or the "Company") (NASDAQ: MOTR). The lawsuit was filed in the United States District Court for the Western District of Washington on behalf of purchasers of the common stock of Motricity during the period between June 18, 2010 and August 9, 2011, inclusive (the "Class Period"), and/or who acquired shares pursuant to or traceable to the Company's June 17, 2010 IPO.

What You May Do

If you are a Motricity shareholder and would like to discuss your legal rights and how this case might affect you and your right to recover for your economic loss, you may, without obligation or cost to you, e-mail or call KSF Managing Partner, Lewis Kahn (lewis.kahn@ksfcounsel.com), toll free, 877-515-1850, or via cell phone any time at 504-301-7900. If you wish to serve as a lead plaintiff in this class action by overseeing lead counsel with the goal of obtaining a fair and just resolution, you must request this position by application to the Court by October 11, 2011.

About the Lawsuit

The complaint accuses the defendants of violations of the Securities Act of 1933 and the Securities Exchange Act of 1934.

On June 17, 2010, Motricity priced its IPO at $10 per share, for net proceeds of $51.4 million. The complaint alleges that during the Class Period, defendants misled investors concerning the trends in Motricity's business, and asserted that the Motricity would continue to achieve success despite the increasing popularity of smartphones. As a result of defendants' false statements, Motricity stock traded at artificially inflated prices during the Class Period, reaching a high of $30.74 per share on November 9, 2010.

On May 3, 2011, Motricity issued a press release that announced a net loss of ($6.1) million, or ($0.15) diluted earnings per share for Q1 2011. Motricity's stock fell $1.82 per share to close at $10.99 per share on May 4, 2011. Then, on August 9, 2011, Motricity reported a net loss of ($4.3) million, or ($0.09) diluted earnings per share for Q2 2011. This result failed to come close to Wall Street's forecast. Accordingly, Motricity's shares sunk, opening at $2.26 per share on August 10, 2011, a decline of 50% on huge volume.

About Kahn Swick & Foti, LLC

KSF, whose partners include the Former Louisiana Attorney General Charles C. Foti, Jr., is a law firm focused on securities class action and shareholder derivative litigation with offices in New York and Louisiana. To learn more about KSF, you may visit www.ksfcounsel.com.

Contact Information

  • Contact:

    Kahn Swick & Foti, LLC
    Lewis Kahn
    Managing Partner
    877-515-1850
    or after hours via cell phone 504-301-7900
    lewis.kahn@ksfcounsel.com
    206 Covington St.
    Madisonville, LA 70447