Travelzoo Hit With Shareholder Class Action

Law360, New York (August 10, 2011, 7:49 PM EDT) -- Travelzoo Inc. shareholders hit the travel deals provider with a putative class action Tuesday in New York federal court alleging that Travelzoo's directors lied about the company's financial health, artificially inflating the stock price.

Shareholders claim Travelzoo published false and misleading reports in April that were overly optimistic about the company's growth prospects and caused share prices to jump.

When the company reported on July 21 that it was performing well under expectations, the stock price plummeted more than 30 percent in one day, according to...
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