Bernstein Liebhard Announces Class Action Filed Against Angie's List
Bernstein Liebhard LLP today announced that a class action has been commenced in the United States District Court for the Southern District of Indiana on behalf of purchasers (the "Class") of common stock of Angie's List, Inc. ("Angie's List") (NASDAQ: ANGI) during the period of February 14, 2013 and October 23, 2013 (the "Class Period").
The complaint charges Angie's List and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Angie's List operates a website that provides subscription-based reviews of local service providers, purportedly authored by other locals, and referrals to local service providers to consumers across the United States.
The complaint alleges that during the Class Period, Angie's List issued 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 the following adverse facts: (i) Angie's List had increased its reliance on providing free memberships in order to artificially boost its subscriber figures; (ii) contrary to Angie's List's repeated Class Period statements that the online reviews were unbiased because Angie's List did not permit service providers to buy ratings on its website ("You