Law firm Lerach Coughlin is orchestrating a class action lawsuit against Yahoo on behalf of shareholders who purchased securities between April 8, 2004 and July 18, 2006. The suit alleges the company made fraudulent and misleading claims about the reception of its Panama ad platform, among other grievances.

The suit takes issue with comments executives made to shareholders suggesting a positive outlook even as the company was losing marketshare to Google. Lerach Coughlin also states Yahoo engaged in a variety of deceptive practices enticing customers to buy advertising. It also cites a number of operational deficiencies and missed opportunities as causes that contributed to lost revenue targets.

Lerach Goughlin is currently seeking Yahoo shareholder support and a lead plaintiff for the suit.