RM LAW, P.C. announces that a class action lawsuit has been filed on behalf of all persons or entities that purchased Care.com, Inc. (“Care.com” or the “Company”) (NYSE: CRCM) between March 27, 2015 and April 1, 2019, inclusive (the “Class Period”).
Care.com shareholders may, no later than June 3, 2019, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of Care.com and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (844) 291-9299 or to sign up online, click here.
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 Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements, and omitted materially adverse facts, about the Company’s business, operations and prospects. As a result of defendants’ alleged false and misleading statements, the Company’s stock traded at artificially inflated prices during the Class Period.
According to the Complaint, on March 8, 2019, the truth about Care.com’s ineffective screening practices began to emerge when The Wall Street Journal published an article titled “Care.com Puts Onus on Families to Check Caregivers’ Backgrounds – With Sometimes Tragic Outcomes.” The article described how caregivers in the U.S. “who had police records were listed on Care.com and later were accused of committing crimes while caring for customers’ children or elderly relatives…” These alleged crimes included theft, child abuse, sexual assault and murder.
On this news, the price of Care.com stock fell almost 13%, to close at $20.48 per share on March 11, 2019.
On March 31, 2019, The Wall Street Journal reported that “hundreds of day-care centers” listed as “state licensed” on the Care.com website did not appear to be, and that tens of thousands of unverified day-care center listings were scrubbed from the Care.com website just before The Wall Street Journal’s March 8, 2019 article was published.
On this news, the price of Care.com stock fell almost 7%, to close at $18.45 per share on April 1, 2019.
If you are a member of the class, you may, no later than June 3, 2019, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as “lead plaintiff.” Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain RM LAW, P.C. or other counsel of your choice, to serve as your counsel in this action.