Indianapolis based Angie’s List’s CEO William Oesterle and four other top executives are being sued.
The suit that is seeking class action status, claims that the five made a series of false or misleading statements about the company’s prospects that inflated its stock price earlier this year as they sold $13 million of their own shares.
Also listed as one of the defendants is co-founder and chief marketing officer Angela Hicks Bowman.
The company reported a third quarter loss of $13.5 million.
Angie's List provides reviews of service providers such as plumbers and roofers by its members.