Audience measurement firm Comscore has announced a long-term contract with Virginia-based broadcaster Lockwood; but also faces a number of shareholder class actions after 100 days in which its share price rose and fell abruptly.
Lockwood Broadcast Group, a long-term client of Comscore's, has agreed an exclusive deal for measurement services for its local television stations in Knoxville, TN; Wichita, KS; Augusta, GA; Dothan, AL; Panama City, FL; and Sherman-Ada-Ardmore, TX - and will also use Comscore's automotive and political advanced audience segmentation.
Lockwood President Dave Hanna states: 'We have found Comscore a trustworthy, stable and reliable source for TV viewing data, which has led stations in several of our markets to exclusively use Comscore as the sole transactional currency. The marketplace is speaking loud and clear, and Lockwood is pleased to work with Comscore to help drive our revenue and market share' Comscore's EVP of Local Markets. Steve Walsh adds: 'Comscore is very excited to be expanding our long partnership with Lockwood. They are active and enthusiastic users of our audience insights in the marketplace, and we look forward to continuing to work proactively with their stations' teams to help grow their success'.
Meanwhile New York's Bronstein, Gewirtz & Grossman, LLC and LA-based Schall are among the law firms who have filed a class action lawsuit against Comscore, alleging that its key execs made misleading statements about the state and prospects of the business, causing the share price to climb sharply in January. The suits cover the period November 8th 2018 - March 29th 2019 and allege violations of the federal securities laws under the Securities Exchange Act of 1934.
Comscore's stock rose from a low of $13.19 on Xmas Eve to over $20 on the first day of February, and continued a slower climb to a high of $23.09 on March 6th. On April first it fell from north of $20 to just above $14 - a one-day loss of nearly 28% of its value. As of 14th May the stock is at a 5-year low of $11.15.
The BG&G suit is against then-CEO Bryan Wiener and CFO Gregory A. Fink, and references the former's resignation on 31st March after less than a year; as well as the company's missing of its estimates for first quarter revenue. The claim says that 'Throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that the Company was experiencing difficulties implementing its business strategy; (2) that, as a result, the Company's financial results would be materially impacted; and (3) that, as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis' - all leading to 'significant losses and damages' for class members.
Web sites: www.bgandg.com/scor , www.schallfirm.com and www.comscore.com .
All articles 2006-19 written and edited by Mel Crowther and/or Nick Thomas.