EverQuote, Inc. (EVER) Accused of Lying to Investors About Undisclosed Quote Request Strategy

According to the complaint, in June 2018, EverQuote, Inc. (EVER) held its IPO based on a misleading registration statement, issuing approximately 4.7 million shares of EverQuote stock at $18 per share. EverQuote's registration statement touted the company's year-over-year and quarterly increases in both revenue and quote request volume, even though the company had already strategized to lower its quote request volume to inflate other financial metrics ahead of the IPO. To the disappointment of investors, EverQuote's first public earnings report revealed that second quarter 2018 quote request volume had worsened to a year-over-year growth rate of only 2.3%—down from 14.3% touted in the registration statement—and to a quarterly decline of 12%. Then, in November 2018, EverQuote revealed that quote request volume had worsened to zero growth, causing the company's stock to plummet dramatically. EverQuote's stock currently trades at $5.48 per share, a nearly 70% decline from the offering price.

EverQuote, Inc. (EVER) Shareholders Have Legal Options

Concerned shareholders who would like more information about their rights and potential remedies can please send us a message via the Shareholder Information form below.