Travelzoo Execs Sweetened Forecasts, Investors Say

Law360, New York (October 7, 2011, 1:19 PM EDT) -- Executives at travel deals site Travelzoo Inc. were accused Thursday in a shareholder derivative suit of sugarcoating financial forecasts, under-reporting the company's expenses and unloading $188 million of their own stock ahead of price drop.

Beginning in April, executives failed to tell shareholders that the company's growth plan would require costs to run over budget, plaintiff Kevin Kitt alleges. Escalating marketing and administrative expenses, undisclosed to shareholders, undermined Travelzoo's financial health and led to a 35 percent drop in the share price in July, according to...
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Case Information

Case Title

Kitt v. Bartel et al


Case Number

1:11-cv-07019

Court

New York Southern

Nature of Suit

Securities/Commodities

Judge

George B. Daniels

Date Filed

October 5, 2011

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