| Company: | CTPartners Executive Search Inc. |
| Ticker Symbol: | CTP |
| Class Period: | Feb-26-14 to Feb-28-15 |
| Date Filed: | Mar-1-15 |
| Lead Plaintiff Deadline: | Apr-30-15 |
| Court: | Southern District of New York |
| Allegations: | |
The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements, and omitted materially adverse facts, about the Company's business, operations and prospects. Specifically, the Complaint alleges that the defendants concealed from the investing public: (1) that the Company had long standing employment discrimination issues that exposed the Company to the heightened risk that its reputation and ability to attract and retain search consultants would be significantly damaged; (2) that the Company was experiencing declining earnings due to increased business integration, administrative and management expenses that were outpacing revenue growth; and (3) that, based on the foregoing, Defendants lacked a reasonable basis for their positive statements about the Company, its business and prospects. As a result of defendants' alleged false and misleading statements, the Company's stock traded at artificially inflated prices during the Class Period.
According to the Complaint, on January 21, 2015, CTPartners announced its preliminary fourth quarter and full year 2014 financial results. The Company announced preliminary adjusted EPS for the quarter well below its original guidance. CTPartners blamed the miss on over $1.3 million in purportedly unanticipated expenses related to increased management, administrative and business development costs.
Then, on January 28, 2014, the Company withdrew its preliminary fourth quarter and year-end guidance and revised downward its earnings guidance for the first quarter and full fiscal year 2015. The Company stated that the downward revision was due to a $1.7 million increase in "compensation expense" for employee bonuses. In addition, for the second time in two months, CTPartners announced that it was withdrawing a proposed stock offering.
On this news, shares in CTPartners plummeted over 33%, closing at $4.35 per share on January 29, 2015, on extraordinarily high trading volume.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
