This is a securities fraud class action lawsuit against Arbitron and certain of its officers and directors.
Arbitron, through its subsidiaries, provides media and marketing information services in the United States and internationally. Arbitron's Portable People Meter ratings service is purportedly capable of measuring radio, broadcast television, cable television, Internet broadcasts, satellite radio and television audiences, and retail store video and audio broadcasts.
The class action lawsuit alleges that Arbitron issued materially false and misleading statements that misrepresented and failed to disclose:
(i) that Arbitron's scheduled implementation of its Portable People Meter ratings service in certain major markets was not performing according to internal expectations and Arbitron was experiencing significant difficulties such that it would have to delay its implementation; and
(ii) as a result, defendants lacked a reasonable basis for their positive statements about the timing of the implementation of Arbitron's Portable People Meter ratings service and Arbitron's prospects and future earnings.
On November 26, 2007, Arbitron announced that "it [would] delay the commercialization of its Portable People Meter (PPM) radio ratings service in nine markets" and that Arbitron would be revising its financial guidance for 2007 and its outlook for 2008. In response to this announcement, the price of Arbitron common stock declined $7.21 per share, or over 14.74%, to close at $41.70 per share, on unusually high trading volume.
Name (Stock Symbol)
Arbitron, Inc. (ARA)
Arbitron, Inc. provides media and marketing information services in the United States and internationally. Arbitron, Inc. services include radio audience measurement and related services to radio stations, advertising agencies, and advertisers in the United States
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