Robbins Geller Rudman & Dowd LLP Files Class Action Suit Against CTPartners Executive Search Inc.
28 February 2015 - 2:00PM
Business Wire
Robbins Geller Rudman & Dowd LLP (“Robbins Geller”)
(http://www.rgrdlaw.com/cases/ctpartners/) today announced that a
class action has been commenced in the United States District Court
for the Southern District of New York on behalf of purchasers of
CTPartners Executive Search Inc. (“CTPartners”) (NYSEMKT:CTP)
common stock during the period between February 26, 2014 and
January 28, 2015 (the “Class Period”).
If you wish to serve as lead plaintiff, you must move the Court
no later than 60 days from today. If you wish to discuss this
action or have any questions concerning this notice or your rights
or interests, please contact plaintiff’s counsel, Darren Robbins of
Robbins Geller at 800-449-4900 or 619-231-1058, or via e-mail at
djr@rgrdlaw.com. If you are a member of this class, you can view a
copy of the complaint as filed or join this class action online at
http://www.rgrdlaw.com/cases/ctpartners/. Any member of the
putative class may move the Court to serve as lead plaintiff
through counsel of their choice, or may choose to do nothing and
remain an absent class member.
The complaint charges CTPartners and certain of its officers and
directors with violations of the Securities Exchange Act of 1934.
CTPartners provides retained executive search services. CTPartners
facilitates the recruitment and hiring of “C-level” executives,
other senior executives and board members.
The complaint alleges that during the Class Period, defendants
repeatedly highlighted the Company’s reputation within the
industries in which it operated based on the “integrity” of its
employees and on the strength and qualifications of its search
consultants. Further, the Company represented that these
consultants were promoted based on “objective” and “transparent”
criteria related to their merits, and that this purported
meritocracy had been and would be a key to the Company’s ongoing
success. Defendants, however, failed to disclose that CTPartners
allegedly operated as a “den of discrimination” that subjected
employees to crude, improper and discriminatory practices, which
threatened the Company’s ability to raise capital, retain employees
or successfully execute its core business functions. As a result of
defendants’ false statements, CTPartners common stock traded at
artificially inflated prices during the Class Period, reaching a
high of $23.15 per share on November 12, 2014.
On December 8, 2014, an article in The New York Post reported
that an “explosive” complaint had been filed with the Equal
Employment Opportunity Committee by a former CTPartners employee,
which reportedly detailed CTPartners as “a den of discrimination
where women are stripped of profitable accounts, held to a higher
standard than their male colleagues and subjected to lewd
behavior.” That same day, CTPartners withdrew a stock offering that
had been announced less than 24 hours earlier. As a result of this
news, the price of CTPartners stock dropped $4.50 per share, a
decline of 24% from the prior closing price.
On January 21, 2015, CTPartners announced disappointing
preliminary fourth quarter and full fiscal year 2014 financial
results, including earnings per share that came in well below the
Company’s original guidance. CTPartners stated the miss was due to
over $1.3 million in purportedly unanticipated expenses related to
increased management, administrative and business development
costs. On this news, the price of CTPartners stock dropped $3.63
per share, a one-day decline of more than 29%.
Then, on January 28, 2015, CTPartners withdrew its preliminary
fourth quarter and year-end guidance provided only one week earlier
and revised downward its earnings guidance for the first quarter
and full fiscal year 2015. The Company stated that the downward
revision was due to a $1.7 million increase in “compensation
expense” for employee bonuses. In addition, CTPartners again
withdrew a proposed stock offering, this one announced only two
days prior. On this news, the price of CTPartners stock dropped
$2.17 per share to close at $4.35 per share on January 29, 2015, a
one-day decline of more than 33%.
Plaintiff seeks to recover damages on behalf of all purchasers
of CTPartners common stock during the Class Period (the “Class”).
The plaintiff is represented by Robbins Geller, which has expertise
in prosecuting investor class actions and extensive experience in
actions involving financial fraud.
Robbins Geller, with 200 lawyers in ten offices, represents U.S.
and international institutional investors in contingency-based
securities and corporate litigation. The firm has obtained many of
the largest securities class action recoveries in history,
including the largest securities class action judgment. Please
visit http://www.rgrdlaw.com for more information.
Robbins Geller Rudman & Dowd LLPDarren Robbins, 800-449-4900
or 619-231-1058djr@rgrdlaw.com
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