#USA #New York #Securities Fraud #Pomerantz LLP #MediaAlpha

Pomerantz Law Firm Investigates MediaAlpha for Alleged Fraud

On January 8, 2025, Pomerantz LLP announced its investigation into claims concerning MediaAlpha, Inc. (NYSE: MAX). This inquiry targets potential securities fraud or improper business practices that could have impacted investors.

The law firm is reaching out to investors who believe they may have suffered financial losses due to MediaAlpha's activities. For anyone impacted, they are encouraged to contact Danielle Peyton at Pomerantz, as they are actively assembling essential documentation for a potential class-action lawsuit.

Background of the Investigation

The investigation was prompted following a damaging report released by Wolfpack Research on June 24, 2024. This report alleged that MediaAlpha is involved in fraudulent practices, specifically related to its health insurance segment. According to Wolfpack, MediaAlpha uses misleading advertising and deceptive websites to lure consumers into divulging personal information, which is then sold as lead data to partners. Alarmingly, they suggest that nearly 78% of MediaAlpha's health insurance lead-buying partners might be associated with telemarketing scams.

As a direct consequence of these allegations, MediaAlpha's stock faced a significant drop, plummeting $1.92—or 11.84%—over two trading sessions. By June 25, the stock closed at $14.29 per share.

The situation worsened for MediaAlpha when the company revealed on November 4, 2024, that it had received a letter from the Federal Trade Commission (FTC) staff. The letter indicated that the FTC was poised to recommend initiating a complaint against MediaAlpha for multiple violations, including infringements of the Federal Trade Commission Act and the Telemarketing Sales Rule. Following this disclosure, MediaAlpha’s stock price fell dramatically again, losing $4.46—or 27.74%—to close at $11.62 per share the next day.

Pomerantz LLP's Role

Founded by the late Abraham L. Pomerantz, the law firm has established a reputation as a leader in class-action suits involving corporate and securities violations. Over its 85-year history, Pomerantz has earned recognition for advocating on behalf of victims of securities fraud and corporate misdeeds. Their expertise in securities litigation has resulted in substantial recoveries for class members in previous actions.

For investors who feel they may have been misled or wronged by MediaAlpha's practices, the firm offers a chance to join a larger group for a collective legal effort. The firm is well equipped and committed to confronting potential violations against the company.

Conclusion

The unfolding situation regarding MediaAlpha raises significant questions about corporate responsibility and investor protection. As Pomerantz continues its investigation, it urges any investors who might have experienced losses to come forward and explore the possibility of legal recourse.

Those interested in participating in the investigation may reach out to Pomerantz LLP through the contact details provided. This case highlights the importance of vigilance in the corporate sector as consumer protection remains a priority.