Chesterton Tribune

 

 

Lawsuit: Angie's List execs misled shareholders

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INDIANAPOLIS (AP) - Five top executives at Angie’s List Inc. are accused in a lawsuit of making false or misleading statements about the consumer review service’s financial condition that inflated its stock price as they sold more than $13 million worth of their shares.

A lawsuit was filed Monday in U.S. District Court in Indianapolis, where Angie’s List is based, the Indianapolis Business Journal and The Indianapolis Star reported. The lawsuit was filed on behalf of shareholders Eva and Harold Baron by Robbins Geller Rudman & Dowd LLP, a national securities litigation firm that secured $7.3 billion in settlements for former investors of scandal-plagued energy giant Enron Corp.

Angie’s List spokeswoman Cheryl Reed told The Associated Press on Tuesday the company had no comment on the lawsuit.

The lawsuit alleges that five top Angie’s List officials, including co-founders William Oesterle and Angela Hicks Bowman, misled investors about the company’s condition from February to October. The lawsuit alleges multiple violations of federal securities regulations and seeks unspecified financial damages on behalf of common shareholders. It also seeks class-action status.

The lawsuit said Oesterle benefited the most, selling off $10.3 million in shares. The lawsuit said the company reported a third-quarter loss of $13.5 million, or 23 cents a share, which was worse than the 20-cents-per-share loss that analysts were led to expect “based on defendants’ bullish” statements.

Angie’s List stock fell from a high of $28 in the summer to a low of around $12 in the fall.

 

 

Posted 12/26/2013