The Frankowski Firm, LLC announces the commencement of an investigation into Demand Media, Inc. (“DMD” or the “Company”) (NYSE: DMD) to determine whether it has violated securities laws by issuing false and misleading statements to its shareholders in light of the disclosures made about Google’s changes to its search engine methodologies that have dramatically reduced the number of references to the Company’s websites. The Company relies heavily on Google for references to the Company’s websites. These references are a substantial source of revenue for DMD.
Before January 26, 2011, Google announced that it had already begun to implement, and would continue to implement, changes to its search engine methodology that would reduce the number of references to “content farm” websites like those operated by DMD. The Company generates revenue when a user clicks on one of its highly ranked bits of media from an internet search engine, most often Google, which serves as the Company’s largest source of references.
As Google has altered its search engine methodologies, visits to the Company’s websites have declined, as have DMD’s revenues. We are investigating whether the Company properly disclosed business risks and other potential problems in the registration statements and prospectus it issued in connection with the Company’s January 26, 2011 Initial Public Offering of DMD common stock.
What You Can Do
If you are a DMD shareholder and you purchased shares of DMD in the January 26, 2011 Initial Public Offering, you may have legal claims under the securities laws. If you wish to discuss this investigation, or have questions about this notice or your legal rights, please contact attorney Richard Frankowski at The Frankowski Firm, LLC via email at firstname.lastname@example.org or via toll-free telephone at 888-741-7503. There is no cost to you.
The Frankowski Firm, LLC, is a Birmingham, Alabama law firm that among other things dedicates its practice to representation of shareholders and investors in litigation, including shareholder class action, derivative litigation and FINRA arbitration. More information about the firm is available through its website, www.frankowskifirm.com and upon request from the firm. The Frankowski Firm, LLC has paid for the dissemination of this promotional communication, and Richard Frankowski is the attorney responsible for its content.
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If you have a legal question about an investment or think you have been the victim of investment fraud, please contact Richard Frankowski at 205-747-1903 to discuss your potential legal remedies.