Johnson Fistel Files Class Action Suit against Nielsen Holdings plc
Johnson Fistel, LLP announces that a class action has been commenced on behalf of purchasers of Nielsen Holdings plc (NYSE:NLSN) common stock during the period between February 8, 2018 and July 25, 2018 (inclusive the “Class Period”).
If you wish to serve as lead plaintiff, you must move the Court no later October 9, 2018. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Jim Baker at (firstname.lastname@example.org) at 619-814-4471. If emailing, please include a phone number. You can view a copy of the complaint at www. johnsonfistel.com.
The complaint charges Nielsen and certain of its officers with violations of the Securities Exchange Act of 1934. Nielsen describes itself as a leading global performance management company providing its clients with a comprehensive understanding of what consumers watch and what they buy and how those choices intersect.
The complaint alleges that during the Class Period, Nielsen repeatedly assured investors that its measurement and analytics services continued to be viable and strong. In addition, according to the Company, because privacy was built into its business processes, the enactment of the European General Data Protection Regulation (“GDPR”) would not impact its business, nor limit necessary access to large data sets provided by its partners like Facebook. Accordingly, despite business challenges in certain geographic regions, as late as June 5, 2018, defendants stated the Company’s 2018 financial outlook for revenue earnings and free cash flow of $800 million remained on track.
Then, on July 26, 2018, Nielsen announced that it had missed revenue and earnings targets for the second quarter of 2018, that the GDPR was affecting its partners and clients, and that the Company’s CEO would retire at the end of 2018. The Company also announced sharp revisions to EBITDA margin growth, a $0.56 reduction of projected net income, and a $250 million reduction in free cash flow guidance, which was sharply below the guidance issued in April 2018. As a result of these disclosures and the significant reduction in the Company’s outlook for free cash flow, the price of Nielsen stock declined more than 25%, from a close of $29.57 per share on July 25, 2018 to a close of $22.11 per share on July 26, 2018.
Plaintiff seeks to recover damages on behalf of all purchasers of Nielsen common stock during the Class Period (the “Class”). The plaintiff is represented by Johnson Fistel, which has broad experience in prosecuting investor class actions including actions involving financial fraud.