MaxPoint Interactive Inc. (MaxPoint), an advertising technology firm founded in 2006, offers business intelligence and marketing automation software service designed to enable national brands to drive local, in-store sales. MaxPoint’s customers consist primarily of national retail, consumer products, automotive, restaurant, healthcare, and entertainment brands that use its MaxPoint Intelligence Platform, a cloud-based software service sold directly to customers and through advertising agencies which is designed to enable national brands to predict the most likely local buyers of a specific product at a particular retail location and manage customized digital advertisements containing local in-store offers and promotions across display, mobile, social and video channels to reach these buyers.
On March 6, 2015, MaxPoint completed its IPO, selling 6.5 million shares of common stock to investors at $11.50 per share, for gross proceeds of more than $74 million. In connection with its IPO, the Company filed a Registration Statement and Prospectus (collectively, the "Offering Materials") with the SEC.
The securities fraud lawsuit alleges that the Offering Materials contained false and misleading statements about the company’s financial condition, business and prospects, including that the company failed to disclose that MaxPoint:
· was wholly dependent upon its top 50 customers alone for two-third of its sales; and
· had been signing smaller customers with smaller advertising budgets in the months leading up to its IPO.
The suit alleges that at the time of the IPO, MaxPoint's sales growth was declining, bringing its profits down, which was amplified due to its higher-than-disclosed customer concentration. The adverse events and uncertainties associated with these declining trends were alleged to be "reasonably likely to have a material impact on MaxPoint's profitability, and, therefore, were required to be disclosed in the Registration Statement".
Following the IPO, MaxPoint common stock prices have declined to a trading price of less than $5.00 per share at eh time the suit was filed, an approximately 60% decline from the IPO price.
What investors are part of this class action ? The Class Period is currently defined as all persons who purchased MaxPoint common stock between March 3, 2015 and August 31, 2015, inclusive (the “Class Period”). MaxPoint common stock trades under the symbol “MXPT”.
Procedural Status. The lawsuit was filed on August 31, 2015 and is captioned Nguyen v. MaxPoint Interactive Inc. et al. It was filed in New York Southern District Court. Its civil docket number is 1:15cv06880. The lead plaintiff deadline is October 30, 2015.
This case is in the notice period. When a shareholder brings suit under certain federal securities law, generally that shareholder must give notice via a press release. This notice starts a 60 day period of time when any shareholder can investigate the underlying claims of the lawsuit and then elect to bring suit as well. At the end of this 60 day period, the court appoints one shareholder (or a group of shareholders) to prosecute the securities litigation. We will review the docket again in June and update this page as warranted.