WebMD Faces Class Action Over Faulty Financials

Law360, New York (September 2, 2011, 1:31 PM EDT) -- A WebMD Health Corp. shareholder has launched a class action in New York, claiming in a complaint made public Thursday that the company hid its deteriorating financial outlook from investors, eventually costing them millions when it revealed its diminished prospects.

On July 18, WebMD cut its earnings expectations by roughly $30 million and profit predictions by about $10 million, prompting its stock price to plummet by $14 per share, according to the complaint. The company revised its anticipated revenue because it had lost advertisers and attracted...
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