Framingham Online News

Framingham Firm Faces Investor Lawsuit

Filed under: Business by Randy Harris at 8:59 pm on August 1, 2011
The Princeton Review, Inc, Framingham, MA

The Princeton Review, Inc, 111 Speen Street, Suite 550, Framingham, MA 01701

FRAMINGHAM, MA - The Princeton Review, Inc., (NASDAQ:REVU), is a Framingham, MA based company which markets college preparatory materials, (training test for PSAT, SAT, LSAT and other tests), and offers online and in-person courses, tutoring, software, books and related products and services in 41 states in the USA and in twenty other countries.

The company has recently come under fire and faces an impending class action lawsuit by investors.

On July 29, 2011, Attorney Theodore M. Hess-Mahan of the law firm Hutchings, Barsamian, Mandelcorn & Zeytoonian, LLP, Wellesley Hills, MA filed a complaint for plaintiff's "Washtenaw County Employees' Retirement System on behalf of itself and All Others Similarly Situated" in Federal Court, (Massachusetts District).

The complaint alleges The Princeton Review, Inc. and certain of its officers and directors  as well as Roth Capital Partners, LLC which served as underwriters for the involved securities violated the Securities Act of 1933 and the Securities Exchange Act of 1934.

The suit pertains to purchases of The Princeton Review, Inc. securities between March 12, 2009 and March 11, 2011, (the "Class Period").

Princeton Review executives named in the suit include: Stephen C. Richards, Susan Rao, David Lownestein, Jeffrey R. Crisan, Robert E. Evanson, Christian G. Kasper, Richard Katzman, Michael A. Krupka and Linda Whitlock.

The complaint alleges that The Princeton Review's former Chairman & CEO Michael Perik who left the company on March 10, 2011 and the other named executives routinely issued statements including financial reports, press releases and that direct statements from Perik and the others to the investing public failed to reflect adverse facts about the company's revenue and earnings.

The complaint further alleges that the defendants knew about growing competition from low price competitors and made statements that the company was on-course for growth when it knew otherwise and that those statements were misleading.  Details complain that during the class period, investors lost money as the stock price tumbled, and that defendants who were principals in the company sold off millions of dollars of stock while withholding information they were required to disclose to investors.

In particular, the complaint claim that, during the period of time the suit is based on, the founder of the company Johnathan Katzman sold off nearly 3 Million shares of stock for some $10.8 Million dollars, and that his brother Richard Katzman sold off 10,000 shares he owned.

On August 2, 2009, shares of Princeton Preview stock, (NASDAQ:REVU) were valued $5.41.  The stock has been in a steady downhill slide for the past two years and today, (August 1, 2011), trades for just over $0.20 a share.

For more information, contact Attorney Theodore M. Hess-Mahan, of Hutchings, Barsamian, Mandelcorn & Zeytoonian, LLP, 110 Cedar Street, Wellesley Hills, MA 02481, Phone: (781) 431-2231, or visit website: www.hutchingsbarsamian.com

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