A class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of purchasers of Travelzoo Inc. (NasdaqGS: TZOO) common stock during the period between April 21, 2011 and July 20, 2011 (the “Class Period”). The complaint alleges that, during the Class Period, defendants issued materially false and misleading statements regarding the Company’s business and prospects. Specifically, defendants misrepresented and/or failed to disclose the following adverse facts: (a) that the Company’s hiring and marketing costs were increasing due to, among other things, Travelzoo running a $2 million TV advertising test during the second quarter that negatively impacted earnings by about $0.07 per share; (b) that the Company’s European newsletter business was performing below internal expectations; and (c) that, as a result of the foregoing, defendants lacked a reasonable basis for their positive statements about the Company and its prospects.

On July 21, 2011, Travelzoo announced its financial results for the second quarter of 2011, the period ended June 30, 2011. For the quarter, the Company reported revenues of $37.6 million and net income of $4.9 million, or $0.30 per share – well below analysts’ expectations. In reaction to the announcement, the price of Travelzoo common stock fell $29.71 per share, or 35%, to close at $56.00 per share, on heavy trading volume. During the three-month Class Period, defendants Ralph Bartel, a founder of the Company, a director and a member of its compensation committee, and Christopher J. Loughlin, Travelzoo’s Chief Executive Officer, along with another Company insider, collectively sold 2,458,158 shares of their personally held Travelzoo common stock for gross proceeds in excess of $188.4 million.

If you are a current shareholder and/or purchased during the period April 21, 2011 and July 20, 2011 and would like to discuss your options of exercising your rights as a shareholder, please contact us.

Please submit the following information so we can determine if you qualify for the suit. If you don't know all the specific details, partial information is also acceptable.