Robbins Geller Rudman & Dowd LLP Files Class Action Suit against Expedia, Inc.

  Robbins Geller Rudman & Dowd LLP Files Class Action Suit against Expedia,
  Inc.

Business Wire

NEW YORK -- August 27, 2013

Robbins Geller Rudman & Dowd LLP (“Robbins Geller”)
(http://www.rgrdlaw.com/cases/expedia/) today announced that a class action
has been commenced in the United States District Court for the Western
District of Washington on behalf of purchasers of Expedia, Inc. (“Expedia”)
(NASDAQ:EXPE) common stock during the period between July 27, 2012 and July
25, 2013 (the “Class Period”).

If you wish to serve as lead plaintiff, you must move the Court no later than
60 days from today. If you wish to discuss this action or have any questions
concerning this notice or your rights or interests, please contact plaintiff’s
counsel, Samuel H. Rudman or David A. Rosenfeld of Robbins Geller at
800/449-4900 or 619/231-1058, or via e-mail at djr@rgrdlaw.com. If you are a
member of this class, you can view a copy of the complaint as filed or join
this class action online at http://www.rgrdlaw.com/cases/expedia/. Any member
of the putative class may move the Court to serve as lead plaintiff through
counsel of their choice, or may choose to do nothing and remain an absent
class member.

The complaint charges Expedia and certain of its officers and directors with
violations of the Securities Exchange Act of 1934. Expedia, together with its
subsidiaries, operates as an online travel company in the United States and
internationally. In 2011, Expedia split into two publicly traded companies by
spinning off the TripAdvisor brand of travel sites.

The complaint alleges that during the Class Period, defendants issued
materially false and misleading statements regarding the Company’s business
and prospects, including the impact that spinning off TripAdvisor would have
on Expedia’s revenues and profits. As a result of defendants’ false statements
and/or omissions, Expedia’s stock traded at artificially inflated levels
during the Class Period.

On July 25, 2013, after the close of trading, Expedia issued a press release
announcing its second quarter 2013 financial results for the quarter ended
June 30, 2013. Expedia's second-quarter 2013 profit fell to $71.5 million from
$105.2 million a year earlier. Overall, bookings rose only 13%, well below the
19% surge the Company posted during fiscal 2012. The Company also lowered its
guidance for 2013 adjusted earnings, predicting growth in the mid to high
single digits. In response to this announcement, on July 26, 2013, the price
of Expedia common stock declined $17.80 per share – or more than 27% – on
extremely high trading volume.

According to the complaint, during the Class Period defendants misrepresented
or failed to disclose the following adverse facts which were known to or
recklessly disregarded by them: (a) that following the spin-off, TripAdvisor
had been directing a significant amount of lucrative web traffic to Expedia
pursuant to an informal strategic partnership between the two companies that
inured to the benefit of Expedia and to the detriment of TripAdvisor; (b) that
the lucrative web traffic directed to Expedia from TripAdvisor following the
spin-off had been a material source of Expedia's outsized revenues following
the spin-off; (c) that TripAdvisor would stop directing web traffic to Expedia
in early 2013; and (d) that performance at the Company’s Hotwire unit was
failing.

Plaintiff seeks to recover damages on behalf of all purchasers of Expedia
common stock during the Class Period (the “Class”). The plaintiff is
represented by Robbins Geller, which has expertise in prosecuting investor
class actions and extensive experience in actions involving financial fraud.

Robbins Geller represents U.S. and international institutional investors in
contingency-based securities and corporate litigation. With nearly 200 lawyers
in nine offices, the firm represents hundreds of public and multi-employer
pension funds with combined assets under management in excess of $2 trillion.
The firm has obtained many of the largest recoveries and has been ranked
number one in the number of shareholder class action recoveries in MSCI’s Top
SCAS 50 every year since 2003. Please visit http://www.rgrdlaw.com for more
information.

Contact:

Robbins Geller Rudman & Dowd LLP
Samuel H. Rudman, 800-449-4900
David A. Rosenfeld
djr@rgrdlaw.com
 
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