BENSALEM, Pa. -- (Business Wire)
Law
Offices of Howard G. Smith announces that it is investigating
potential claims on behalf of investors of Bankrate, Inc. (“Bankrate” or
the “Company”) (NYSE:RATE), concerning possible violations of federal
securities laws. The investigation is focused on certain statements
issued by the Company concerning Bankrate’s operations and financial
performance. Bankrate publishes, aggregates and distributes personal
finance content on the Internet.
The investigation is related to the Company’s September 15, 2014,
disclosure that the Securities and Exchange Commission is conducting a
formal investigation related to the Company’s financial reporting during
2012, with the principal focus on the quarters ending March 31, 2012 and
June 30, 2012.
According to the Company, the investigation will examine “three accruals
of revenue totaling approximately $781,000 in the aggregate and two
adjustments to reduce accrued expenses totaling approximately $850,000
in the aggregate,” which were made during the close process for the
second quarter of 2012. The investigation will also examine, among other
things:
-
the timing and classification of additional entries relating to
certain expenses, expense accruals and credits in the second quarter
and other periods in 2012.
-
an entry originally made in the third quarter of 2011 establishing an
allowance of $460,000 for anticipated customer credits in the
Insurance business that was ultimately reversed in the first quarter
of 2012.
-
revenue and expense adjustments totaling $225,000 in May 2012 that
were reversed in June 2012; and
-
whether accounting entries in these periods may have improperly
impacted the Company’s reported results, including relative to market
expectations at such time.
The Company further disclosed that, in connection with the ongoing SEC
investigation, on September 14, 2014, Bankrate’s Audit Committee
concluded that the Company’s previously issued financial statements for
fiscal years 2011, 2012 and 2013 should no longer be relied upon,
pending a full internal review of these matters. Following these
disclosures, Bankrate shares fell nearly 14% in intraday trading on
September 15, 2014.
If you purchased Bankrate shares, if you have information or would like
to learn more about these claims, or if you have any questions
concerning this announcement or your rights or interests with respect to
these matters, please contact Howard G. Smith, Esquire, of Law Offices
of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania
19020 by telephone at 215-638-4847, Toll-Free at 888-638-4847, or by
email to howardsmith@howardsmithlaw.com,
or visit our website at www.howardsmithlaw.com.
Contacts:
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
888-638-4847
howardsmith@howardsmithlaw.com
www.howardsmithlaw.com
Source: Law Offices of Howard G. Smith
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