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