NASDAQ GS
EIGI

Endurance International Group Holdings, Inc.

Shareholder Securities Fraud Litigation

Rigrodsky & Long, P.A. Announces A Securities Fraud Class Action Lawsuit Has Been Filed Against Endurance International Group Holdings, Inc. (NASDAQ GS: EIGI)

Rigrodsky & Long, P.A., including former Special Assistant United States Attorney, Timothy J. MacFall, announces that a complaint has been filed in the United States District Court for the District of Massachusetts on behalf of all persons or entities that purchased the common stock of Endurance International Group Holdings, Inc. (“Endurance” or the “Company”) (NASDAQ GS: EIGI) between November 4, 2014 and April 27, 2015, inclusive (the “Class Period”), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).

If you purchased shares of Endurance during the Class Period, or purchased shares prior to the Class Period and still hold Endurance,  and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Timothy J. MacFall, Esquire or Peter Allocco of Rigrodsky & Long, P.A., 2 Righter Parkway, Suite 120, Wilmington, DE 19803 at (888) 969-4242; by e-mail to info@rl-legal.com.

The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements, and omitted materially adverse facts, about the Company’s business, operations and prospects.  Specifically, the Complaint alleges that the defendants concealed from the investing public that: (1) the Company overstated its average revenue per subscriber (“ARPS”) and organic growth rate; (2) the Company engaged in irregular accounting practices related to its international business; and (3) as a result, Defendants’ statements about Endurance’s business, operations, and prospects were false and misleading and/or lacked a reasonable basis.  As a result of defendants’ alleged false and misleading statements, the Company’s stock traded at artificially inflated prices during the Class Period.

According to the Complaint, on April 28, 2015, research firm Gotham City Research LLC published a report alleging, among other things, that 40% to 100% of Endurance’s reported profits were suspect and the Company’s normalized profits would be insufficient to cover its interest expenses.  The report alleged that the Company uses related parties to inflate earnings, and that transactions with related entities have accounted for at least 16.5% of the Company’s 2012-2014 Earnings Before Interest, Taxes, Depreciation and Amortization.  The report also alleged that the Company’s reported organic growth was overstated and that 2014 ARPS had actually declined 13% when the Company’s 10-K claimed that ARPS had grown 11%.

On this news, shares in Endurance dropped over 10%, closing at $19.70 per share on April 28, 2015, on heavy trading volume.

If you wish to serve as lead plaintiff, you must move the Court no later than July 3, 2015.  A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class.  Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff.  Any member of the proposed class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

While Rigrodsky & Long, P.A. did not file the Complaint in this matter, the firm, with offices in Wilmington, Delaware and Garden City, New York, regularly litigates securities class, derivative and direct actions, shareholder rights litigation and corporate governance litigation, including claims for breach of fiduciary duty and proxy violations in the Delaware Court of Chancery and in state and federal courts throughout the United States.

Attorney advertising.  Prior results do not guarantee a similar outcome.