San Diego – (Businesswire): Haeggquist & Eck, LLP, a leading shareholder and consumer rights litigation firm, is investigating whether Care.com, Inc. (“Care.com”) (NYSE: CRCM) violated the federal securities laws by issuing false or misleading statements beginning approximately
May 8, 2018.
Care.com, based in Waltham, MA, operates a website designed to help consumers find child care, senior care, and other services. During the Class Period, Care.com emphasized the strength of its business model and reliability of its ongoing revenue and earnings growth, causing its stock price to trade at fraudulently-inflated prices, reaching a Class Period high of $25.67 on March 1, 2019. CEO Sheila Lirio Maracelo sold approximately 325,000 of her shares for more than $6.6 million in proceeds.
In fact, on March 8, 2019, The Wall Street Journal (“WSJ”) published the results of a detailed investigation into Care.com – “Care.com Puts Onus on Families to Check Caregivers’ Backgrounds – With Sometimes Tragic Outcomes.” According to the WSJ, over the past six years, caregivers on Care.com allegedly committed crimes while caring for children or seniors, including child abuse, sexual assault, and murder. On this news, the stock price plummeted more than $5 per share – a decline of 20% from its Class Period high. Then, this week on April 1, 2019, the WSJ published a second report disclosing that rather than having “hundreds” of unlicensed daycare centers on the Care.com website, there were actually thousands, and that Care.com had removed about 72% of them, or about 45,594 businesses. On this news, the stock fell another $1.31 per share, or more than 6.6%, to close at $18.45 per share on April 1, 2019.
What You Can Do
If you purchased shares of Care.com stock between May 8, 2018 and March 29, 2019, you may have legal claims against the Company. If you wish to discuss this investigation, or have questions about your legal rights, please contact attorney Amber Eck. There is no cost to you. Haeggquist & Eck, LLP is a nationally recognized leader in shareholder rights law and has helped shareholders recover more than $1 billion of value for themselves and the companies in which they have invested. This release constitutes attorney advertising. Past results do not guarantee a similar outcome.