Rocket Fuel Executives Under Investigation for Failing to Police Ad Fraud and Bot Traffic
We have launched an investigation into whether certain officers and directors of Rocket Fuel Inc. (FUEL) breached their fiduciary duties by overstating Rocket Fuel’s ability to adequately identify and eliminate ad fraud and bot traffic in its advertising campaigns. We are further investigating whether certain Rocket Fuel insiders sold portions of their Rocket Fuel stock while in possession of material adverse non-public information that artificially inflated Rocket Fuel’s stock price. Rocket Fuel provides artificial-intelligence digital advertising solutions.
On December 23, 2015, the United States District Court for the Northern District of California upheld securities fraud class action claims against Rocket Fuel and certain of its officers and directors. The class action alleges that during the period September 20, 2013 through August 5, 2014, the defendants misrepresented key aspects of the company’s business. Specifically, defendants are accused of falsely assuring investors that Rocket Fuel’s proprietary technology could “identify and eliminate all threats” regarding ad fraud and bot traffic. Before the truth was revealed on August 5, 2014 – which prompted a single-day 30% share price drop – certain Rocket Fuel insiders sold portions of their stock holdings at prices as high as $61 per share for proceeds of over $175 million in early 2014. Rocket Fuel’s stock now trades below $3 per share.
Our investigation concerns when and how much certain of Rocket Fuel’s officers and directors knew or should have known of Rocket Fuel’s claimed ability to completely combat ad fraud and bot traffic, and whether Rocket Fuel insiders sold stock based on non-public information.
Shareholders interested in seeking the recovery of damages on behalf of Rocket Fuel and securing other remedial measures should contact Dustin Schubert either via email at email@example.com or by telephone at (415) 788-4220, or fill out the form (at right).