August 25, 2011
BOSTON, MA – Gilman and Pastor, LLP announces that a lawsuit seeking class action status has been filed in the United States District Court for the Southern District of New York on behalf of the purchasers of WebMD Health Corp. (“WebMD” or the “Company”) (NASDAQ: WBMD) who purchased shares between February 23, 2011 and July 15, 2011, inclusive (the “Class Period”).
The Complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company’s business and prospects. Specifically, defendants misrepresented and/or failed to disclose the following adverse facts: (i) that WebMD was experiencing sponsorship cancellations due to extended legal and regulatory reviews; (ii) that WebMD’s customers, including several consumer product companies, were delaying advertising on the Company’s website as a result of smaller advertising budgets; and (iii) as a result of the foregoing, defendants lacked a reasonable basis for their positive statements about the Company and its prospects.
As a result of Defendants’ misleading statements, shares of WBMD traded at artificially high price levels. On July 18, 2011, WebMD announced its preliminary second quarter financial results and lowered its financial guidance for 2011. Consequently, the price of WebMD stock fell $14.01 per share, or 40%, to close at $40.48 per share, on extremely heavy trading volume.
If you purchased or otherwise acquired WBMD shares during the Class Period, between February 23, 2011 and July 15, 2011, and either lost money on the transaction or still hold the shares, you may contact Gilman and Pastor by no later than October 3, 2011 to discuss your rights, including as to the recovery of your losses, or to obtain additional information, at www.investment-losses.com, by email at email@example.com or by calling toll-free (888)252-0048.