Motricity Faces Investor Suit After Stock Plunge

Law360, New York (August 15, 2011, 7:46 PM EDT) -- Motricity Inc. and its executives on Friday were hit with a proposed class action in Washington state by an investor who claims misleading and overly optimistic statements during the company's initial stock offering last year led to an inflated stock price, which has since plummeted more than 90 percent.

The suit, filed by shareholder Joe Callan, alleges securities violations by the mobile data services provider, along with founder and CEO Ryan Wuerch, nine other company executives and seven underwriting financial institutions — including JPMorgan Securities Inc....
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