SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of MediaAlpha, Inc. - MAX
NEW YORK, Dec. 2, 2024 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of MediaAlpha, Inc. ("MediaAlpha" or the "Company") (NYSE: MAX). Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, ext. 7980.
The investigation concerns whether MediaAlpha and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On June 24, 2024, Wolfpack Research published a report entitled "MAX: Our Investigation Reveals MAX Is Participating in Consumer Fraud." In pertinent part, Wolfpack announced that it was "short the insurance lead generator, MediaAlpha, Inc. (NYSE: MAX) following our research into the company's [Health Insurance] segment[.]" Wolfpack stated that it believed "[MediaAlpha] uses dishonest and sometimes outright fraudulent ads along with deceptive websites to trick consumers into providing their personal information in exchange for a health insurance 'quote.' [MediaAlpha] then sells this information as raw lead data or uses it to generate clicks or calls for its lead-buying partners. Our investigation indicates as much as 78% of [MediaAlpha's] Health [Insurance] lead-buying partners are running boiler room health insurance scams or are flagrantly violating laws concerning telemarketing."
On this news, MediaAlpha's stock price fell $1.92 per share, or 11.84%, over the following two trading sessions, to close at $14.29 per share on June 25, 2024.
Then, on November 4, 2024, MediaAlpha disclosed in a regulatory filing that it had received a letter from the Federal Trade Commission ("FTC") staff stating that the FTC staff "is prepared to recommend that the FTC approve the filing of a complaint against the Company" for violations of the Federal Trade Commission Act, the Telemarketing Sales Rule, and the Government and Business Impersonation Rule, "propos[ing] to seek injunctive and monetary relief and civil penalties."
On this news, MediaAlpha's stock price fell $4.46 per share, or 27.74%, to close at $11.62 per share on November 5, 2024.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
CONTACT:
Danielle Peyton
Pomerantz LLP
dpeyton@pomlaw.com
646-581-9980 ext. 7980
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SOURCE Pomerantz LLP
