Ark. Teachers Say Bankrate Shorted Investors $850M

Law360, New York (October 15, 2013, 8:23 PM EDT) -- Arkansas teachers launched a class action Thursday accusing Bankrate Inc. of shorting investors $850 million by misleading them over the quality of the company's insurance leads in conjunction with its initial public offering in June 2011.

Bankrate executives allegedly told investors that it could get higher referral fees and be more profitable than its competitors, causing Bankrate's stock price to rise from $15 per share at the time of its IPO to $24.75 at the end of March 2012, according to the complaint.

In May of...
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Case Information

Case Title

Arkansas Teacher Retirement System v. Bankrate Inc. et al


Case Number

1:13-cv-07183

Court

New York Southern

Nature of Suit

Securities/Commodities

Judge

Jed S. Rakoff

Date Filed

October 10, 2013

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