NEW YORK, May 29, 2019 (GLOBE NEWSWIRE) -- Bernstein Liebhard LLP announced today that only five days remain to file a motion for lead plaintiff in a class action lawsuit pending against Care.com, Inc. (“Care.com” or the “Company”) in the United States District Court for the District of Massachusetts on behalf of all persons or entities (the “Class”) who purchased the common stock of Care.com, Inc. (“Care.com” or the “Company”) (CRCM) during the period between March 27, 2015 and April 1, 2019 (the “Class Period”). The complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
If you wish to file a motion for lead plaintiff in the Care.com class action, you must move the Court no later than June 3, 2019. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery does not require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
Care.com purports to be the world’s largest online family care platform. The Company claims to “help families make informed hiring decisions” about caregivers.
The complaint alleges that defendants made materially false and misleading statements regarding the Company’s vetting procedures for care providers. Specifically, plaintiffs allege that defendants misleadingly touted the Company’s “proactive” screening procedures.
On March 8, 2019, a Wall Street Journal article revealed Care.com’s ineffective screening procedures, reporting that care providers listed on the website “had police records…and later were accused of committing crimes while caring for customers’ children or elderly relatives.” Care.com’s stock dropped 13% after these revelations.
On March 31, 2019, a follow-up Wall Street Journal article stated that “hundreds of day-care centers” listed as “state licensed” on the Care.com website did not appear to be, and that tens of thousands of unverified day-care center listings were scrubbed from the Care.com website just before the March 8, 2019 Wall Street Journal article was published. Care.com’s stock dropped another 7% after these disclosures.
If you purchased Care.com common stock, and/or would like to discuss your legal rights and options, please visit https://www.bernlieb.com/cases/care-crcm-lawsuit-class-action-fraud-stock-123/ or contact Matthew E. Guarnero toll free at (877) 779-1414 or MGuarnero@bernlieb.com.
Bernstein Liebhard LLP has pursued hundreds of securities, consumer, and shareholder rights cases and recovered over $3.5 billion for its clients. The Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and been listed in The Legal 500 for ten consecutive years.
You can obtain a copy of the complaint by contacting the clerk of the court for the United District Court for the District of Massachusetts.
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