Travelzoo has today announced that a purported class action has been filed in the United States District Court for the Southern District of New York against the company and certain of its officers and directors.
The complaint alleges violations of federal securities laws, and claims that the company has issued false and misleading information concerning the company’s business and prospects.
The action seeks unspecified damages on behalf of persons who purchased the company’s shares during a recent period.
The company stated that it strongly believes the case is “completely without merit”.
Chris Loughlin, Travelzoo’s chief executive officer, commented: “We believe that our disclosures have been accurate and fully compliant with the company’s obligations under securities laws and under the rules of NASDAQ.
“As is the case with many meritless securities class action claims, the filing of this action follows a decline in Travelzoo’s share price, in a period of continued volatility in the share price.
“We intend to vigorously defend against these meritless claims.”