A class action lawsuit filed in the U.S. District Court for the Southern District of Indiana charges key officers of Angie's List of defrauding investors who purchased stock in the company between between February 14, 2013 and October 23, 2013 by issuing materially false and misleading statements regarding the strength of the company’s business model and its financial performance and future prospects and failed to disclose adverse effects on the company's prospects of becoming profitable. Named in the lawsuit are the company's CEO, William Oesterle, the company's co-founder and Chief Marketing Officer, Angie Hicks Bowman, current and past CFOs Charles Hundt and Robert Millard, and Thapur Manu, the recently-terminated Chief Information Officer.
The serious allegations contained in the lawsuit call into question the legitimacy of the subscription-based reviews of local service providers on the company's website because of its shifting business model, which increasingly relies on revenues it now derives from referral fees to those same service providers. According to the lawsuit, Angie's List this year began relying on offering free membership subscriptions in order to artificially boost the number of subscribers in order to mislead investors. This helped boost the price of the stock significantly during the period in question. Oesterle and the other officers cashed out many shares they owned during this period for a handsome profit. Ooesterle sold 486,400 shares of stock for more than $10.3 million, while the other officers collectively sold about $3 million of their personally-held shares of common stock "to the unsuspecting public at fraud-inflated prices."
At the same time, the company's assertion that "You can't pay to be on Angie's List" appears dubious based on the company's growing reliance on revenues it derives from service providers. The company has increasingly started relying on fees it collects from service providers (more than half of its revenues) in consideration for listing them more prominently on the company's website than service providers which don't pay the additional fees. In some instances, the lawsuit alleges that Angie's List "sometimes charges service providers hundreds of dollars for 'hot leads.'" Those costs are "passed along to . . . subscribers, increasing the prices consumers were paying and decreasing the benefit to them of using the website," the lawsuit alleges.
just like TASR did, but they actually made $$$ and still do, selling products that law enforcement wants and needs, and they won ALL of their lawsuits... but Mr. Market still took TASR down from $18 to below $5.
barriers to entry here are nonexistent, this is toast, face it
Sentiment: Strong Sell
They have the "Death Star" nearly functional though.... Come on they're going to slaughter the competition! Oh wait Luke used the Force and destroyed the Death Star... Oops Board must have forgotten the ending to that story.
If they reserved $4 million for a suite "without any merit" as they kept telling us in calls and in their 10Qs, and then in one quarter they had to reserve $4 million -which is still an estimate and not the final settlement- #$%$ are we to expect for the 17 suites filed now?
form the legal complaint of the Fritzinger suit:
1) renewing its members at a higher membership fee than that which is permitted pursuant to the Membership Agreement, and 2) automatically renewing existing members at a more costly membership level than that at which they subscribed. Plaintiff further alleges that Defendant has knowingly and intentionally made false statements concerning its membership renewal policies, and that Defendant has misapplied entrusted property in the form of its members’ credit cards.
Who in their right mind would take advice from a monkey's calling themselves PennyStocksWeekly?
They're certainly trying to keep[ it around the 15 level. Ultimately no one can manipulate forever. ANGI will rise or fall based on fundamentals and investor confidence. I really see this going to single digits within 6 months or probably much sooner.
No I think the Officers of this Co. have paid themselves enough to keep price lofty until next payday/stock sell. Sorry to all the good Hoosiers out there, didn't mean ya'll.
Hooziers might be but Hoosiers are not. Do you really think the institutional money is in Indiana?
yep. post your buys and sells of stocks, will see how your doing #$%$.
I didn't know you had access to my account. As long as I make money I'm good. I posted what I did, did you. #$%$.
I'm already out. In and out. I bought it. My purpose on this was simple as I stated. It was oversold down 15-20%. I bought when it was down 16% yesterday, I was able to earn 8%+ on my investment yesterday. One day. If you read my posts you'll see that. I take advantage of those sellers that sell on fear and margin after the smart ones go, its simple stupid. Get it. Regardless, I still think this company will be fine.
I can't tell whether you're for real or a parody of the typical idiot long in this stock.
1 Membership Fee Scam & 17 Class Action Suits as Follows:
1) Fritzinger v. Angie’s List. This "meritless" suit, per all 10Qs files since the 2012, has now been reserved $4mn.
Class Action Investor Lawsuits:
1) Holzer & Holzer LLC
2) Law Offices Bernard M. Gross, P.C.
3) Pomerantz Law Firm
4) Gainey McKenna & Egleston
5) Bronstein, Gewirtz & Grossman, LLC
6) FORMER LOUISIANA ATTORNEY GENERAL: Kahn Swick & Foti, LLC
7) Robbins Geller Rudman & Dowd LLP
8) Levi & Korsinsky, LLP
9) Brower Piven
10) Cohen, Placitella & Roth
11) Bernstein Liebhard LLP
12) Morgan & Morgan
13) Wolf Haldenstein Adler Freeman & Herz, LLP
14) Faruqi & Faruqi, LLP
15) Lieff Cabraser
16) Robbins Arroyo LLP
17) Wohl & Fruchter LLP
Any of you running EPS forecast models out there, just assume 0/zero cost to settle these, but just add up the admin and legal costs of defending these (unconsolidated as of yet) suits and see what it does to the bottom line. ....Not to mention how taxing this will be on management's attention which is not focused on "experiments" (Angie Hicks words from the recent call) in marking.
Amazing this stock is still hovering in the $15 area after the earnings disaster. Was finally able to gets some shorts today @$15.40. Should be good for the ride down. I think ANGI sees new lows very soon. If ANGI gets anymore of a hairdcut she's going to look like she's on chemo treatments.