At least two law firms this week began recruiting plaintiffs for a shareholder lawsuit against Acxiom Corp., Conway, AR, after the recent decline in the database company’s stock price.
The suits were filed in U.S. District Court in Arkansas by the law offices of Stephen E. Cauley, Little Rock, AR, and Milberg Weiss, San Diego, alleging that the prospectus Acxiom filed for the secondary offering was false and misleading and failed to reveal the significance of Acxiom’s contract renewal with Allstate Insurance Co., Northbrook, IL.
In July, Acxiom raised $146.37 million through the secondary offering, which was priced at $27 a share for about 5.4 million shares. Its stock price has since fallen to below $17.
Both lawsuits cite an Aug. 30 article in Barrons that said Acxiom might have manipulated its earnings statement in the most recent quarter and that it had to renegotiate the pricing on its Allstate deal because of intense competition.
“The litigation and the press releases are groundless and have no merit,” said Acxiom spokesman Dale Ingram.