Online travel deals site Travelzoo has pledged to “vigorously defend” itself against allegations it violated US stock market rules.
A complaint filed in New York alleges Travelzoo violated federal securities laws and claims the company has issued “false and misleading information” concerning its business and prospects.
The action seeks unspecified damages on behalf of persons who purchased the company’s shares during a recent period.
Travelzoo confirmed that a “purported class action” had been filed in the US District Court for the Southern District of New York against the company and certain of its officers and directors.
The company responded by saying that it “strongly believes the case is completely without merit”.
Travelzoo chief executive Chris Loughlin said: “We believe that our disclosures have been accurate and fully compliant with the company’s obligations under securities laws and under the rules of NASDAQ.
“As is the case with many meritless securities class action claims, the filing of this action follows a decline in Travelzoo’s share price, in a period of continued volatility in the share price.
“We intend to vigorously defend [ourselves] against these meritless claims.”