Arbitron To Fight PPM Class Action Suit
April 30, 2008 at 5:52 PM (PT)
COUGHLIN STOIA GELLER RUDMAN & ROBBINS LLP has announced that a class action has been commenced on behalf of an institutional investor, PLUMBERS and PIPEFITTERS Local Union No. 630 Pension-Annuity Trust Fund, in the U.S. DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK on behalf of purchasers of ARBITRON, INC. common stock during the period between JULY 19th, 2007 and NOVEMBER 26th, 2007. The lawsuit is demanding a jury trial.
The complaint charges ARBITRON and Chairman/Pres. & CEO STEPHEN B. MORRIS, and CFO SEAN R. CREAMER with violations of the SECURITIES EXCHANGE ACT OF 1934. It seeks to recover damages on behalf of all purchasers of ARBITRON common stock during the Class Period.
The complaint alleges that, during the Class Period, defendants issued materially false and misleading statements that misrepresented and failed to disclose:
* That ARBITRON's scheduled implementation of its Portable People Meter ratings service in certain major markets was not performing according to internal expectations and the ARBITRON was experiencing significant difficulties such that it would have to delay its implementation
*As a result, defendants lacked a reasonable basis for their positive statements about the timing of the implementation of ARBITRON’s Portable People Meter ratings service and the ARBITRON's prospects and future earnings.
On NOVEMBER 26th, 2007, ARBITRON announced that "it [would] delay the commercialization of its Portable People Meter (PPM) radio ratings service in nine markets" and that the Company would be revising its financial guidance for 2007 and its outlook for 2008. In response to this announcement, the price of ARBITRON common stock declined $7.21 per share, or over 14.74%, to close at $41.70 per share, on unusually high trading volume.
ARBITRON commented: "The COMPANY is aware of the filing of a securities class action in federal court in NEW YORK arising out of events in 2007. The COMPANY will defend itself vigorously.