Travelzoo Beats Securities Suit Over Hotel Bargains Venture

Law360, New York (April 1, 2013, 5:23 PM EDT) -- A New York federal court on Friday dismissed a proposed class action accusing Travelzoo Inc. of misleading shareholders about the true potential of a newly launched hotel deals product, ruling the company wasn't obligated to disclose the venture's potential downsides.

Shareholders alleged Travelzoo had not properly informed investors that its March 2011 test of the Local Share Getaway product, which offers Groupon-style deals on local hotel stays to its subscribers, could drain its growth and bottom-line revenues. But U.S. District Judge George B. Daniels of the...
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