Glancy Binkow & Goldberg LLP announces that a class action lawsuit has been filed in the United States District Court for the Eastern District of Virginia on behalf of a class comprising all purchasers of the common stock of VeriSign, Inc.(NASDAQ:VRSN) between June 25, 2012 and October 25, 2012, inclusive.
The Complaint alleges that throughout the period the Verisign and certain of its executive officers issued materially false and misleading statements regarding the its business, operations and prospects.
Specifically, the Complaint alleges that defendants misrepresented and failed to disclose that: (1) challenges to the Company's registry pricing scheme made it more likely the U.S. Department of Justice and Department of Commerce would demand price concessions in exchange for leaving VeriSign in charge of operating the .com and .net networks; (2) Verisign's growth in domain name registrations was declining; (3) VeriSign was relying heavily on revenues from "parking" websites and other lower-quality websites focused on drawing in and monetizing traffic, rather than in providing pertinent business leads; (4) defendants knew that Google and other Internet search engines had been improving the quality of their search results by adjusting their algorithms to lower the rankings of subpar-quality websites; (5) subpar domain name owners had stopped renewing their agreements with VeriSign as a result of the Internet search engine's efforts to discourage them by demonetizing their practices; and (6) as a result, defendants knew VeriSign's fiscal year 2012 earnings guidance was not attainable.
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