Care.com Class Action Lawsuit Investigation
Our investment fraud lawyers are investigating potential legal claims arising from recent reports that Care.com failed to conduct background checks on prospective caregivers, including some who reportedly had police records for crimes committed against people in their care. Following these reports, the company’s CEO resigned and its stock price declined substantially (NYSE Ticker: CRCM).
If you invested in Care.com before August 6, 2019, you may have a claim. Speak with a Girard Sharp investment fraud attorney about your legal rights at 415.981.4800 or by submitting your information below:
Speak to a Lawyer
Care.com Under Review
Care.com is the world’s largest online service for finding and managing family care. On March 8, 2019, the Wall Street Journal broke the news of Care.com’s allegedly ineffective screening practices, in an article entitled “Care.com Puts Onus on Families to Check Caregivers’ Backgrounds—With Sometimes Tragic Outcomes.” According to the article, caregivers in the U.S. “who had police records were listed on Care.com and later were accused of committing crimes while caring for customers’ children or elderly relatives.” These alleged crimes included theft, child abuse, sexual assault and murder.
After the Wall Street Journal article appeared, the price of Care.com’s common stock fell almost 13% to close at $20.48 per share on March 11, 2019.
On March 31, 2019, a second Wall Street Journal article reported that “hundreds of daycare centers” listed as “state licensed” on the Care.com website did not appear to be state licensed, and that tens of thousands of unverified daycare center listings were removed from the Care.com website just before the initial article of March 8 was published.
After this second Wall Street Journal article appeared, Care.com’s stock price fell about 7% to close at $18.45 per share on April 1, 2019.
On August 6, 2019, Care.com shares fell 24% after it announced reduced revenue and earnings expectations for the 2019 fiscal year. The company said the lower projected revenues were due in part to the “word-of-mouth” impact of the Wall Street Journal’s reporting. On the same day that Care.com made this announcement, its founder and chief executive, Sheila Lirio Marcelo, resigned.
If you invested in Care.com before August 6, 2019, you may have a claim. Speak with a Girard Sharp investment fraud attorney about your legal rights at 415.981.4800 or by submitting your information above.
Our Commitment to Excellence
Girard Sharp has earned national Tier 1 rankings for Mass Tort and Class Action Litigation and has been named to the U.S. News – Best Lawyers “Best Law Firms” list each year since 2013. Read about some of our results.
We have recovered over a billion dollars for our clients against some of the nation’s largest corporations, such as Raymond James, Peregrine Financial Group, and OppenheimerFunds, in cases arising from securities fraud, false advertising and other unfair business practices.
For a free consultation about your potential claims, contact one of our investment fraud attorneys at (415) 981-4800.