Former California Deputy Attorney General and Special Counsel with Johnson Fistel Launches Investigation into Care.com, Inc. (CRCM)
SAN DIEGO- PRNewswire —May 2, 2019
Shareholder Rights Law Firm Johnson Fistel, LLP with the assistance of former California Deputy Attorney General and Special Counsel, Tiffany Johnson, Esq., is investigating potential claims against Care.com, Inc. (NYSE: CRCM) for violations of federal securities laws.
On March 8, 2019, the Wall Street Journal (WSJ) published the results of a detailed investigation into the Company’s business model entitled “Care.com Puts Onus on Families to Check Caregivers’ Backgrounds—With Sometimes Tragic Outcomes.” According to the WSJ, “in about 9 instances over the past six years, caregivers in the U.S. who had police records were listed on Care.com and later were accused of committing crimes while caring for customers’ children or elderly relatives, according to an investigation by The Wall Street Journal, which reviewed police records, court records and local media reports.” “Alleged crimes included theft, child abuse, sexual assault and murder.” “The Journal also found hundreds of instances in which day-care centers listed on Care.com as state-licensed didn’t appear to be.”
The WSJ detailed certain cases of very inappropriate “care” providers being referred by Care.com, including the July 2018 death of two children at a Knoxville, Tennessee daycare center listed on Care.com to be “state-licensed” which was not. Not only was the facility not “state-licensed,” just two months earlier, “a state agency had obtained an injunction” barring that facility “from operating an unlicensed facility.” The March 8th WSJ report also detailed a 2018 incident at Seattle, Washington where “police responded to a call saying a babysitter had been seen stroking the vaginal area and buttocks of a 7-year-old girl in his care,” citing “police and court records.” The WSJ report revealed that “[t]hat babysitter remained on Care.com’s site for weeks, during which time he allegedly also molested a young boy and his friend, based on a second police report.”
If you have information that could assist in this investigation, including past employees and others, or if you are an Care.com shareholder and are interested in learning more about the investigation or your legal rights and remedies, please contact Jim Baker ([email protected]) by email or phone at 619-814-4471. If emailing, please include a phone number.
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Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York, and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit https://www.johnsonfistel.com. Attorney advertising. Past results do not guarantee future outcomes.