Investigation of Meredith Corporation
Meredith Corporation (MDP) Accused of Misleading Shareholders
According to the class action complaint alleging that the officers and directors of Meredith violated the Securities Exchange Act of 1934, in January 2018, Meredith acquired Time Inc. for $3.2 billion, touting that the merger of the two companies “positioned [it] for growth across industry-leading digital, television, print…and social platforms Despite auspicious financial reports and promises of substantial growth throughout the relevant period, Meredith failed to disclose that the acquisition of Time was not as profitable as expected, and Meredith would have to incur additional costs for strategic investments to improve Time’s business. As a result, Meredith’s earnings were adversely affected and, on September 5, 2019, the Company announced that it expected fiscal 2020 adjusted EBITDA to be in the range of $640 million to $675 million, well below analysts’ expectations of $793 million. On this news, Meredith’s stock fell $10.14, over 23%, to close at $33.68 per share, and has yet to recover.
Meredith Corporation (MDP) Shareholders Have Legal Options
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