NEW YORK, March 02, 2017 (GLOBE NEWSWIRE) -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC notifies investors that a class action lawsuit has been filed against SITO Mobile, Ltd. (“SITO” or the “Company”) (NASDAQ:SITO) and certain of its officers, and is on behalf of purchasers of SITO securities between February 9, 2016, and January 2, 2017, inclusive (the “Class Period”). Such investors are encouraged to join this case by visiting the firm’s site: http://www.bgandg.com/sito.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the “Exchange Act”).
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (1) SITO’s development of bookings would not drive the Company’s fourth fiscal quarter 2016 media placement revenues and revenue growth to the level represented during the Class Period; (2) SITO was aware that the election would impact its fourth fiscal quarter 2016 revenue; (3) clients’ campaign spending and media placement revenues in the fourth quarter 2016 was highly dependent on the election; (4) SITO’s growth in media placement revenues would not occur in the fourth fiscal quarter 2016; (5) consequently, SITO’s statements about its business, operations, and prospects were false and misleading and/or lacked a reasonable basis.
On January 3, 2017, SITO released discouraging quarterly revenue results for its preliminary media placement for the quarter ending December 31, 2016. SITO said its results were “negatively affected this year by restrained advertising spending during a period of heightened and elongated media focus on this year’s U.S. election.” Jerry Hug SITO’s CEO was quoted, “We clearly underestimated the effects of this year’s election on our clients’ campaign spending.” Despite a positive conference call in the third quarter where Hug told an analyst that there would not be a significant drop from the election, the discouraging results came shortly after the SITO’s repeated hype and positive forecast. Following this news, SITO stock dropped 32% on January 3, 2017.
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint you can visit the firm’s site: http://www.bgandg.com/sito or you may contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484. If you suffered a loss in SITO you have until April 18, 2017 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm’s expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.