Cases
Nielsen Holdings plc (NLSN)
Securities Class Action
Overview
Overview
- Date:
- 9/5/2018
- Company Name:
- Nielsen Holdings plc
- Stock Symbol:
- NLSN
- Class Period:
- FROM 2/8/2018 TO 7/25/2018
- Status:
- Closed/Complete
- Court:
- U.S. District Court: Southern District of New York
NEW YORK, September 5, 2018 - The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) Nielsen recklessly disregarded its readiness for and the true risks of privacy-related regulations and policies, including the European General Data Protection Regulation ("GDPR"), on its current and future financial and growth prospects; (2) Nielsen's financial performance was far more dependent on Facebook and other third-party large data set providers than previously disclosed and privacy policy changes affected the scope and terms of access Nielsen would have to third-party data; (3) access to Facebook and other third-party provider data was becoming increasingly restricted for Nielsen and Nielsen clients; and (4) as a result, Nielsen's public statements were materially false and misleading at all relevant times.
On July 26, 2018, Nielsen shocked investors as it published its financial results for second quarter 2018 announcing that it had missed revenue and earnings targets and was relieving its forecast of $800 million free cash flow for 2018, that the GDPR was affecting partners and clients, and that CEO Barns would retire at the end of 2018. July 26, 2018, second quarter 2018 press release also issued sharp revisions to EBITDA margin growth, a $0.56 reduction of projected net income and a $250 million reduction free cash flow guidance, which was sharply below guidance issued in April 2018 after the first quarter 2018 financial results.
On this news, Nielsen's stock price 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.
On July 26, 2018, Nielsen shocked investors as it published its financial results for second quarter 2018 announcing that it had missed revenue and earnings targets and was relieving its forecast of $800 million free cash flow for 2018, that the GDPR was affecting partners and clients, and that CEO Barns would retire at the end of 2018. July 26, 2018, second quarter 2018 press release also issued sharp revisions to EBITDA margin growth, a $0.56 reduction of projected net income and a $250 million reduction free cash flow guidance, which was sharply below guidance issued in April 2018 after the first quarter 2018 financial results.
On this news, Nielsen's stock price 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.