Faruqi & Faruqi Reminds Lead Plaintiff Deadline In Blucora's Suit

(RTTNews) - Faruqi & Faruqi, LLP said it is reminding investors about the July 14 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against Blucora Inc. (BCOR)

The company said it filed a complaint in the Western District of Washington on behalf of all persons who purchased Blucora securities between November 5, 2013 and February 20.

The complaint is based on the allegation that the company and its executives violated federal securities laws with respect to its disclosures concerning its business, operations, and prospects.

The complaint further alleged that the defendants made false and misleading statements, as well as failed to disclose material adverse facts about the company's business, operations, and prospects between November 5, 2013 and February 20 period.

As per the complaint, the company failed to disclose that its main web properties were tied to malware, viruses and browser hijackers that attack computers; its search volumes had been boosted due to a rise in illicit search traffic; a significant portion of the company's traffic was derived from malware, illicit traffic, pirated content and/or click fraud, including, involuntary clicks, artificial clicks and illicit clicks; and that the company's relationship with Google was impaired and that Google was unlikely to renew its contract with the Company on the same terms as its prior agreement.

On February 18, Gotham City Research LLC published a research report on the financial website Seeking Alpha entitled "Blucora (i.e. Infospace): Worse Than Blinkx Plc & Babylon Ltd." The report alleged that 60% of Blucora's revenue would evaporate in coming quarters, as Google realizes it is better off without Blucora; Blucora's 50% of traffic is derived from malware, click fraud, illicit traffic and it is likely to receive scrutiny from Google.

After this Gotham City report, shares of Blucora declined $2.00 per share, over 8 percent, to close at $21.70 per share on February 18, on unusually heavy volume, the firm alleged.