The Shareholders Foundation announces that an investigation on behalf of current long-term investors in shares of CTPartners Executive Search Inc (NYSEMKT:CTP) was initiated concerning potential breaches of fiduciary duties by certain directors and officers of CTPartners Executive Search.
Shares of CTPartners Executive Search Inc (NYSEMKT:CTP) declined to as low as $3.01 per share on January 29, 2015.
Investors who purchased shares of CTPartners Executive Search Inc (NYSEMKT:CTP) long-term, have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 – 1554.
The investigation by a law firm for current long term investors in NYSEMKT:CTP stocks follows a lawsuit filed recently against CTPartners Executive Search over alleged securities laws violations. The investigation on behalf of current long term investors in NYSEMKT:CTP stocks, concerns whether certain CTPartners Executive Search officers and directors are liable in connection with the allegations made in that lawsuit.
According to that complaint filed in the U.S. District Court for the Southern District of New York the plaintiff alleges that defendants allegedly repeatedly highlighted CTPartners Executive Search’s reputation within the industries in which it operated based on the “integrity” of its employees and on the strength and qualifications of its search consultants. Further, the plaintiff alleges that while CTPartners Executive Search represented that these consultants were promoted based on “objective” and “transparent” criteria related to their merits, and that this purported meritocracy had been and would be a key to the Company’s ongoing success, the defendants, however, allegedly failed to disclose that CTPartners Executive Search allegedly operated as a “den of discrimination” that subjected employees to crude, improper and discriminatory practices, which threatened the Company’s ability to raise capital, retain employees or successfully execute its core business functions. The plaintiff claims that as a result of certain defendants’ statements, CTPartners Executive Search common stock traded at artificially inflated prices between February 26, 2014 and January 28, 2015, reaching a high of $23.15 per share on November 12, 2014.
On December 8, 2014, a media outlet reported that a complaint had been filed with the Equal Employment Opportunity Committee by a former employee of CTPartners Executive Search Inc. The complaint reportedly detailed CTPartners Executive Search Inc as “a den of discrimination where women are stripped of profitable accounts, held to a higher standard than their male colleagues and subjected to lewd behavior.” That same day CTPartners Executive Search Inc announced that it is withdrawing, effective immediately, the previously announced public offering of 702,703 shares of common stock by the Company and 404,767 shares of common stock by Brian M. Sullivan, the Company’s Chairman and Chief Executive Officer, due to market conditions.
On January 21, 2015, CTPartners Executive Search Inc announced its preliminary fourth quarter and full fiscal year 2014 financial results. CTPartners Executive Search Inc announced preliminary adjusted earnings per share (“EPS”) for the quarter of $0.06 to $0.08 per share.
Then, on January 28, 2015, CTPartners Executive Search Inc announced that it is revising its fourth quarter and full year 2014 preliminary earnings results previously announced on January 21, 2015. CTPartners Executive Search Inc said that the revision is a result of a $1.7 million increase in the Company’s estimate of operating expenses for the fourth quarter primarily due to compensation expense associated with consultant performance bonuses.
On April 13, 2015, NYSEMKT:CTP shares closed at $4.01 per share.
Those who purchased shares of CTPartners Executive Search Inc (NYSEMKT:CTP) have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North – Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com