CTPartners being investigated after discrimination claims & expected Q4 loss
On December 8, 2014, the New York Post published a report that female employees of CTPartners filed discrimination charges against the company with the Equal Employment Opportunity Committee, claiming that the Company stripped female employees of profitable accounts, held them to higher standards than their male colleagues, and subjected them to lewd behavior, including a booze-fueled naked romp held by a top partner. On this news, the price of CTPartners’s shares plummeted by 24%.
Then, on January 21, 2015, CTPartners announced preliminary results for the fourth quarter and full year ended December 31, 2014, including a net loss for the fourth quarter expected to be in the range of $0.3-$0.6 million, compared to a net income of $0.1 million for last year’s fourth quarter, purportedly due to higher than anticipated operating expenses related to business development activity, increased marketing and upgrading the search process and corporate infrastructure. On this news, the price of CTPartners’s stock fell by 30%.
KSF’s investigation is focusing on whether CTPartners and/or its officers and directors violated state or federal securities laws.