The Law Offices of Howard G. Smith Announces the Filing of a Securities Class Action on Behalf of Constant Contact, Inc. Investors

BENSALEM, Pa.--(BUSINESS WIRE)--

Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Constant Contact, Inc. ("Constant Contact" or the "Company") CTCT between October 23, 2014 and July 23, 2015, inclusive (the "Class Period"). Investors who purchased or otherwise acquired securities of Constant Contact during the Class Period have until October 6, 2015 to file a lead plaintiff motion.

Constant Contact originated as an email marketing platform for small and midsize organizations. The Company has progressed to provide a suite of online marketing tools that are designed for small organizations, including small businesses, associations and non-profits.

The complaint alleges that the Company and its executives violated the federal securities laws by issuing misleading statements during the Class Period regarding Constant Contact's business operations and financial performance. Specifically, defendants made false and/or misleading statements and/or failed to disclose: (1) that the Company's gross customer additions were lower than expected; (2) that the Company was experiencing negative trends in customer conversion rates; (3) that the Company was steering new customers towards the lowest-priced packages; (4) that, as a result, the Company's revenues for 2015 would be below expectations; and (5) that, as a result of the foregoing, Defendants' statements about Constant Contact's business operations and prospects were false and misleading and/or lacked a reasonable basis.

On July 23, 2015, after the market closed, the Company disclosed earnings results for the second quarter of 2015 with a weak third quarter outlook. Constant Contact experienced low trial-to-conversion rates in April and May of 2014 and a significant swing in product mix with approximately 80% of new customers choosing the lowest-priced Email package instead of higher-priced offerings. On this news, shares of Constant Contact declined $3.35 per share, over 11%, to close on July 24, 2015, at $26.18 per share, on unusually heavy volume

If you purchased shares of Constant Contact during the Class Period you may move the Court no later than October 6, 2015 to ask the Court to appoint you as lead plaintiff if you meet certain legal requirements. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at http://www.howardsmithlaw.com.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

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