Robbins Umeda LLP Announces an Investigation of WebMD Health Corporation
Robbins Umeda LLP, a shareholder rights litigation firm, has commenced an investigation into possible breaches of fiduciary duty and other violations of the law by certain officers and directors at WebMD Health Corporation (NASDAQ: WBMD).
WebMD provides health information services to consumers, physicians, and other healthcare professionals, employers, and health plans through its public and private online portals, mobile applications, and health-focused publications in the United States. The company was founded in 1995, and is headquartered in New York, New York
Robbins Umeda LLP’s investigation focuses on whether the directors and officers of WebMD harmed the company by breaching their fiduciary duties to shareholders. In particular, the firm is investigating allegations that Chief Executive Officer Wayne T. Gattinella, and other fiduciaries at the company, issued improper statements to investors designed to artificially inflate the value of the company. Beginning on February 23, 2011, officers at the company allegedly issued positive financial statements to investors that failed to reflect adverse material facts about WebMD’s numerous sponsorship cancellations, the extension of legal and regulatory laws, and declining advertisement revenue. During this time period, WebMD’s Chief Financial Officer Anthony Vuolo, along with other WebMD executives, allegedly engaged in a coordinated insider trading scheme to reap $44.7 million in illegal proceeds from stock options sold while the company traded at inflated prices. On July 18, 2011, WebMD issued a press release stating that the company was forced to lower its fiscal guidance for 2011. On this news, WebMD shares fell $14.01, or 30% of their value, to close at $32.48 per share that day.
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