SAN DIEGO & SAN FRANCISCO–(BUSINESS WIRE)–$EB #ClassAction–Shareholder rights law firm Robbins
Arroyo LLP reminds investors that purchasers of Eventbrite, Inc.
(NYSE: EB) have filed a class action complaint against the company for
alleged violations of the Securities and Exchange Act of 1933 pursuant
to the company’s September 2018 initial public offering (“IPO”).
Eventbrite operates a ticketing and event technology platform.
View this information on the law firm’s Shareholder Rights Blog: https://www.robbinsarroyo.com/eventbrite-jun-19-2/
Eventbrite Accused of Inflating IPO Price
According to the complaint, Eventbrite acquired Ticketfly, LLC from
Pandora Media for $201.1 million in September 2017. In September 2018,
Eventbrite held its IPO by offering its stock at $23.00 per share and
generating $264.5 million in net proceeds. However, unbeknownst to
investors, the IPO was based on misleading offering documents. In
particular, Eventbrite failed to disclose the negative impact of the
Ticketfly acquisition. On March 7, 2019, Eventbrite revealed that
integrating Ticketfly was taking longer than expected and as a result
issued a lower guidance for the first quarter of 2019. On this news,
Eventbrite’s share price plummeted $7.96 per share, or over 24%, to
close at $24.46 per share on March 8, 2019. On May 1, 2019, Eventbrite
once again issued lower than expected guidance for the second quarter of
2019, due, in large part, to the slower than anticipated migration of
Ticketfly creators. On this news, Eventbrite’s stock declined over 27%
to close at $17.60 per share on May 2, 2019. On June 3, 2019,
Eventbrite’s stock closed at $15.85—over 30% below the IPO price.
Eventbrite Shareholders Have Legal Options
Concerned shareholders who would like more information about their
rights and potential remedies can contact attorney Leo Kandinov at (800)
350-6003, [email protected],
or via the shareholder
information form on the firm’s website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder
rights law. The firm represents individual and institutional investors
in shareholder derivative and securities class action lawsuits, and has
helped its clients realize more than $1 billion of value for themselves
and the companies in which they have invested.
Attorney Advertising. Past results do not guarantee a similar outcome.