/raid1/www/Hosts/bankrupt/CAR_Public/010713.mbx
C L A S S A C T I O N R E P O R T E R
Friday, July 13, 2001, Vol. 3, No. 136
Headlines
AETHER SYSTEMS: Lovell, Sirota Firms File Securities Suit
AGENCY.COM INC: Bernstein Liebhard Files Securities Suit
AKAMAI TECHNOLOGIES: Wolf Haldenstein Files S.D. NY S-holder Suit
ASHFORD.COM INC: Bernstein Liebhard Files Complaint in S.D. NY
BLUE MARTINI: Stull Stull Files Shareholder Suit in S.D. NY
BSQUARE CORPORATION: Bernstein Liebhard Files NY Securities Suit
CALDERA INTERNATIONAL: Bernstein Liebhard Begins Securities Suit
CHORDIANT SOFTWARE: Bernstein Liebhard Files Securities Suit in NY
COMMERCE ONE: Wechsler Harwood Files Securities Suit
DELTATHREE INC: Wechsler Harwood Sets Class Period
DIGITAL IMPACT: Schiffrin & Barroway Files Suit in S.D. NY
DIGITAS INC: Milberg Weiss Files Securities Suit in S.D. NY
DIGITAS INC: Wolf Haldenstein Files Complaint in S.D. NY
DISABILITY LITIGATION: Ruling Expands Suit for Disabled Children
DRKOOP.COM INC: Stull Stull Files Shareholder Suit in S.D. NY
EL SITIO: Wolf Haldenstein Files Shareholder Suit in S.D. NY
EXPEDIA INCORPORATED: Schiffrin & Barroway Files Suit in S.D. NY
FLEMING COMPANIES: Agrees to $16-Million Settlement
GADZOOX NETWORKS: Schiffrin & Barroway File Suit in S.D. NY
IBASIS INC: Bernstein Liebhard File Securities Suit in S.D. NY
IMANAGE INC: Bernstein Liebhard Files Suit in S.D. NY
IMMUNE RESPONSE: Stull Stull Files S-holder Suit, Includes Agouron
IMMUNE RESPONSE: Edward Carreiro Files Securities Suit
INFOSPACE INC: Spector Roseman Files Lawsuit in Washington
INFOSPACE INC: Hagens Berman Sues For Shareholders
INTEGRATED INFORMATION: Edward Carreiro Files Securities Suit
INTERNET CAPITAL:Lovell, Sirota Firms Amend Suit, Create New Class
INTERVOICE-BRITE INC: Faruqi & Faruqi File Suit in Texas Court
IPO UNDERWRITERS: Stull Stull Says Papers Support Allegations
MARCONI PLC: Edward Carreiro Files Securities Case
MEAD-JOHNSON: Infant Formula Mislabeling Spawns Lawsuit in Chicago
MOVIE REVIEWS LITIGATION: Sony Reinstates Manning Marketing Execs
MP3.COM INC: Schiffrin & Barroway Files Securities Suit
ON SEMICONDUCTOR: Bernstein Liebhard Files Securities Suit in NY
RHYTHMS NETCONNECTIONS: Bernstein Liebhard Files Suit in S.D. NY
SIPEX CORPORATION: Edward Carreiro Files Securities Suit
SIPEX CORPORATION: Claims Lawsuits Are Without Merit
TELAXIS COMMUNICATIONS: Wolf Haldenstein Initiates Suit in S.D. NY
TICKETS.COM INC: Bernstein Liebhard Files Securities Suit
TREX COMPANY: Bernard Gross Files Securities Complaint in VA
TYSON FOODS: Faruqi & Faruqi File Suit for IBP Sellers
U.S. WIRELESS: Milberg Weiss Files Suit in N.D. California
*****
AETHER SYSTEMS: Lovell, Sirota Firms File Securities Suit
---------------------------------------------------------
The law firms of Lovell & Stewart, LLP and Sirota & Sirota, LLP
filed a class action lawsuit on July 11, 2001 on behalf of all
persons and entities who purchased, converted, exchanged or
otherwise acquired the common stock of Aether Systems, Inc.
(NasdaqNM:AETH) between October 20, 1999 and April 3, 2001,
inclusive.
The lawsuit asserts claims under Sections 11, 12 and 15 of the
Securities Act of 1933 and Sections 10(b) and 20(a) of the
Securities Exchange Act of 1934 and Rule 10b-5 promulgated by the
SEC thereunder and seeks to recover damages. Any member of the
class may move the Court to be named lead plaintiff no later than
August 20, 2001.
The action, Karasik v. Aether Systems, Inc., et al., is pending in
the U.S. District Court for the Southern District of New York (500
Pearl Street, New York, New York), Docket No. 01-CV-6269 (SWK) and
has been assigned to the Hon. Shirley Wohl Kram, U.S. District
Judge. The complaint alleges that Aether Systems, Inc., David S.
Oros, its President and CEO, David C. Reymann, its Chief Financial
Officer, and Mark D. Ein and Dr. Rajendra Singh, two of its
directors, violated the federal securities laws. It is alleged the
violations were due to issuing and selling Aether common stock
pursuant to the IPO, secondary offering, and tertiary offering
without disclosing to investors that certain of the underwriters in
the offerings had solicited and received excessive and undisclosed
commissions from certain investors.
Rather than allowing their customers to keep their profits from the
IPO, the complaint alleges, the defendant lead underwriters
required their customers to ``kick back'' some of their profits in
the form of secret commissions. These secret commission payments
were sometimes calculated after the fact based on how much profit
each investor had made from his or her IPO stock allocation.
The complaint further alleges that defendants violated the
Securities Act of 1933 because the Prospectuses distributed to
investors and the Registration Statements filed with the SEC in
order to gain regulatory approval for the Aether offerings
contained material misstatements. The misstatements concerned the
commissions that the underwriters would derive from the IPO and
secondary offering and failed to disclose the additional
commissions and "laddering" scheme discussed above.
Investors who purchased Aether common stock during the period
October 20, 1999 through April 3, 2001 may contact Lovell & Stewart
at (212) 608-1900 or www.lovellstewart.com or Sirota & Sirota at
(212) 425-9055 or www.sirotalaw.com for more information regarding
the class action lawsuit. Investors can also visit Lovell &
Stewart's website at www.lovellstewart.com or Sirota & Sirota's
website at www.sirotalaw.com to view a copy of the complaint.
AGENCY.COM INC: Bernstein Liebhard Files Securities Suit
--------------------------------------------------------
Bernstein Liebhard & Lifshitz, LLP commenced a securities class
action lawsuit on behalf all persons who acquired Agency.com, Inc.
(NASDAQ: ACOM - news) securities between December 8, 1999 and
December 6, 2000. A copy of the complaint is available from the
Court or from Bernstein Liebhard & Lifshitz, LLP.
The case is pending in the United States District Court for the
Southern District of New York located at 500 Pearl Street, New
York, New York 10004. The following are named as defendants in the
complaint:
* Agency.com
* Chan Suh
* Kyle Shannon
* Charles T. Dickson
* Kenneth Trush
* Goldman Sachs & Co.
* Salomon Smith Barney, Inc., and
* Hambrecht & Quist LLC.
The complaint charges defendants with violations of the Securities
Act of 1933 and the Securities Exchange Act of 1934 for issuing a
Registration Statement and Prospectus that contained materially
false and misleading information and failed to disclose material
information. The Prospectus was issued in connection with
Agency.com's initial public offering of 6,785,000 shares of common
stock at $11.00 per share that was completed on or about December
8, 1999.
The complaint alleges that the Prospectus was false and misleading
because it failed to disclose
(i) the Underwriter Defendants' agreement with certain
investors to provide them with significant amounts of restricted
Agency.com shares in the IPO in exchange for exorbitant and
undisclosed commissions; and
(ii) the agreement between the Underwriter Defendants and
certain of its customers whereby the Underwriter Defendants would
allocate shares in the IPO to those customers in exchange for the
customers' agreement to purchase Agency.com shares in the after-
market at pre-determined prices.
The SEC is investigating is investigating underwriting practices in
connection with several other initial public offerings, including
the offerings of VA Linux Systems, Inc., Ariba Inc. and United
Parcel Service, Inc.
Persons who purchased or otherwise acquired Agency.com securities
during the Class Period and either lost money on the transaction or
still hold the securities may wish to request court appointment to
serve as lead plaintiff no later than August 27, 2001.
For more informatino about this action, contact Ms. Linda Flood,
Director of Shareholder Relations, at Bernstein Liebhard &
Lifshitz, LLP, 10 East 40th Street, New York, New York 10016, (800)
217-1522 or 212-779-1414 or by e-mail at ACOM@bernlieb.com, or
visit the firm's website at www.bernlieb.com.
AKAMAI TECHNOLOGIES: Wolf Haldenstein Files S.D. NY S-holder Suit
-----------------------------------------------------------------
Wolf Haldenstein Adler Freeman & Herz LLP has filed a class action
lawsuit in the United States District Court for the Southern
District of New York, on behalf of individuals who purchased Akamai
Technologies, Inc. (Nasdaq: AKAM - news) stock between October 28,
1999 and December 6, 2000, inclusive. The suit is against
defendants Akamai, certain of its officers and directors, and its
underwriters.
The case name and index number are Cheng v. Akamai Technologies
Inc. et al, (01-CV-6280). A copy of the complaint filed in this
action is available from the Court, or can be viewed on the Wolf
Haldenstein Adler Freeman & Herz LLP website at
http://www.whafh.com.
The complaint alleges defendants violated the federal securities
laws by issuing and selling Akamai common stock pursuant to the
October 28, 1999 IPO without disclosing to investors that some of
the underwriters in the offering, including the lead underwriters,
had solicited and received excessive and undisclosed commissions
from certain investors.
Specifically, the complaint alleges that in exchange for the
excessive commissions, defendants allocated Akamai shares to
customers at the IPO price. To receive the allocations (i.e., the
ability to purchase shares) at the IPO price, the underwriters'
brokerage customers had to agree to purchase additional shares in
the aftermarket at progressively higher prices. The requirement
that customers make additional purchases at progressively higher
prices as the price of Akamai stock rocketed upward (a practice
known on Wall Street as "laddering") was intended to (and did)
drive Akamai's share price up to artificially high levels. This
artificial price inflation enabled both the underwriters and their
customers to reap enormous profits by buying stock at the IPO price
and then selling it later for a profit at inflated aftermarket
prices.
Persons who purchased Akamai securities during the class period may
request court appointment as lead plaintiff by August 31, 2001.
For more information regarding this action, contact Wolf
Haldenstein Adler Freeman & Herz LLP at 270 Madison Avenue, New
York, New York 10016. Telephone at 800-575-0735 (Fred Taylor
Isquith, Esq., Gustavo Bruckner Esq., Thomas Burt, Esq., Michael
Miske, or George Peters), via e-mail at classmember@whafh.com or
visit our website at http://www.whafh.com.Your e-mail should refer
to Akamai.
ASHFORD.COM INC: Bernstein Liebhard Files Complaint in S.D. NY
--------------------------------------------------------------
Bernstein Liebhard & Lifshitz, LLP commenced a securities class
action lawsuit on behalf all persons who acquired Ashford.com, Inc.
(NASDAQ: ASFD - news) securities between September 22, 1999 and
December 6, 2000. A copy of the complaint is available from the
Court or from Bernstein Liebhard & Lifshitz, LLP.
The case is pending in the United States District Court for the
Southern District of New York located at 500 Pearl Street, New
York, New York 10004. The following are named as defendants in the
complaint:
* Ashford.com
* Robert Shaw
* Kenneth E. Kurtzman
* David F. Gow
* James H. Whitcomb, Jr.
* Kevin R. Harvey
* Goldman, Sachs & Co.
* BankBoston Robertson Stephens, Inc.
* Deutsche Banc Alex. Brown, and
* E*Offering Corp.
The complaint charges defendants with violations of the Securities
Act of 1933 and the Securities Exchange Act of 1934 for issuing a
Registration Statement and Prospectus that contained materially
false and misleading information and failed to disclose material
information. The Prospectus was issued in connection with
Ashford.com's initial public offering of 6,250,000 shares of common
stock at $13.00 per share that was completed on or about September
22, 1999.
The complaint alleges that the Prospectus was false and misleading
because it failed to disclose
(i) the Underwriter Defendants' agreement with certain
investors to provide them with significant amounts of restricted
Ashford.com shares in the IPO in exchange for exorbitant and
undisclosed commissions; and
(ii) the agreement between the Underwriter Defendants and
certain of its customers whereby the Underwriter Defendants would
allocate shares in the IPO to those customers in exchange for the
customers' agreement to purchase Ashford.com shares in the after-
market at pre-determined prices.
The SEC is investigating underwriting practices in connection with
several other initial public offerings, including the offerings of
VA Linux Systems, Inc., Ariba Inc. and United Parcel Service, Inc.
Persons who purchased or otherwise acquired Ashford.com securities
during the Class Period and either lost money on the transaction or
still hold the securities may wish request court appointment to
serve as lead plaintiff no later than September 10, 2001.
For more information on this action, contact Ms. Linda Flood,
Director of Shareholder Relations, at Bernstein Liebhard &
Lifshitz, LLP, 10 East 40th Street, New York, New York 10016, (800)
217-1522 or 212-779-1414, by e-mail at ASFD@bernlieb.com,
or visit the firm's website at www.bernlieb.com.
BLUE MARTINI: Stull Stull Files Shareholder Suit in S.D. NY
-----------------------------------------------------------
Stull, Stull & Brody filed a class action lawsuit on July 11, 2001,
in the United States District Court for the Southern District of
New York, on behalf of purchasers of Blue Martini Software, Inc.
(NASDAQ:BLUE - news) common stock between July 24, 2000 and July 9,
2001, inclusive.
The complaint alleges that defendants
* Blue Martini
* Monte Zweben
* John E. Calonico, Jr.
* James C. Gaither
* A. Michael Spence
* Andrew W. Verhalen
* Edward H. Vick, and
* William F. Zuendt
violated the federal securities laws by issuing and selling Blue
Martini common stock pursuant to the July 24, 2000 IPO without
disclosing to investors that some of the underwriters in the
offering, including the lead underwriters, had solicited and
received excessive and undisclosed commissions from certain
investors.
The complaint alleges that, in exchange for the excessive
commissions, members of the underwriting group Goldman Sachs & Co.,
Dain Rauscher Incorporated, Thomas Weisel Partners LLC and U.S.
Bancorp Piper Jaffray Inc. allocated Blue Martini shares to
customers at the IPO price of $20.00 per share. To receive the
allocations (i.e., the ability to purchase shares) at $20.00, the
underwriters' brokerage customers had to agree to purchase
additional shares in the aftermarket at progressively higher
prices. The requirement that customers make additional purchases at
progressively higher prices as the price of Blue Martini stock
rocketed upward (a practice known on Wall Street as "laddering"')
was intended to (and did) drive Blue Martini's share price up to
artificially high levels. This artificial price inflation, the
complaint alleges, enabled both the underwriters and their
customers to reap enormous profits by buying stock at the $20.00
IPO price and then selling it later for a profit at inflated
aftermarket prices. The aftermarket price rose as high as $57 3/8
on its first day of trading, and which subsequently, on August 9,
2000, rose to a peak of $77 5/8.
Rather than allowing their customers to keep their profits from the
IPO, the complaint alleges, the underwriters required their
customers to "kick back" some of their profits in the form of
secret commissions. These secret commission payments were sometimes
calculated after the fact based on how much profit each investor
had made from his or her IPO stock allocation.
The complaint further alleges defendants violated the Securities
Act of 1933, as the Prospectus distributed to investors, and the
Registration Statement filed with the SEC in order to gain
regulatory approval for the Blue Martini offering contained
material misstatements regarding the commissions that the
underwriters would derive from the IPO transaction. It failed to
disclose the additional commissions and "laddering" scheme
discussed above.
Persons who bought the common stock of Blue Martini between July
24, 2000 and July 9, 2001 may, no later than 60 days from July 11,
2001, request court appointment as lead plaintiff. For more
information, contact Tzivia Brody, Esq. at Stull, Stull & Brody by
calling toll-free 1-800-337-4983, or by e-mail at SSBNY@aol.com, or
by fax at 212/490-2022, or by writing to Stull, Stull & Brody, 6
East 45th Street, New York, NY 10017.
BSQUARE CORPORATION: Bernstein Liebhard Files NY Securities Suit
----------------------------------------------------------------
Bernstein Liebhard & Lifshitz, LLP filed a securities class action
lawsuit on behalf all persons who acquired BSQUARE Corporation
(NASDAQ: BSQR - news) securities between October 19, 1999 and
December 6, 2000. A copy of the complaint is available from the
Court or from Bernstein Liebhard & Lifshitz, LLP.
The case is pending in the United States District Court for the
Southern District of New York located at 500 Pearl Street, New
York, New York 10004. The following are named as defendants in the
complaint:
* BSQUARE
* William T. Baxter
* Brian V. Turner
* Albert T. Dosser
* Peter R. Gregory
* Jeffrey T. Chambers
* Scott E. Land
* William Larson, and
* Credit Suisse First Boston Corporation.
The complaint charges defendants with violations of the Securities
Act of 1933 and the Securities Exchange Act of 1934 for issuing a
Registration Statement and Prospectus that contained materially
false and misleading information and failed to disclose material
information. The Prospectus was issued in connection with BSQUARE's
initial public offering of 4 million shares of common stock at
$15.00 per share that was completed on or about October 19, 1999.
The complaint alleges that the Prospectus was false and misleading
because it failed to disclose
(i) Credit Suisse's agreement with certain investors to
provide them with significant amounts of restricted BSQUARE shares
in the IPO in exchange for exorbitant and undisclosed commissions;
and
(ii) the agreement between Credit Suisse and certain of its
customers whereby Credit Suisse would allocate shares in the IPO to
those customers in exchange for the customers' agreement to
purchase BSQUARE shares in the after-market at pre-determined
prices.
The SEC is investigating is investigating underwriting practices in
connection with several other initial public offerings, including
the offerings of VA Linux Systems, Inc., Ariba Inc. and United
Parcel Service, Inc.
Persons who purchased or otherwise acquired BSQUARE securities
during the Class Period and either lost money on the transaction or
still hold the securities may wish to request court appointment as
lead plaintiff no later than September 10, 2001. For more
information, contact Ms. Linda Flood, Director of Shareholder
Relations, at Bernstein Liebhard & Lifshitz, LLP, 10 East 40th
Street, New York, New York 10016, (800) 217-1522 or 212-779-1414 or
by e-mail at BSQR@bernlieb.com, or visit the firm's website at
www.bernlieb.com.
CALDERA INTERNATIONAL: Bernstein Liebhard Begins Securities Suit
----------------------------------------------------------------
Bernstein Liebhard & Lifshitz, LLP filed a securities class action
lawsuit on behalf all persons who acquired Caldera International,
Inc. (NASDAQ: CALD - news) securities between March 21, 2000 and
December 6, 2000. A copy of the complaint is available from the
Court or from Bernstein Liebhard & Lifshitz, LLP.
The case is pending in the United States District Court for the
Southern District of New York located at 500 Pearl Street, New
York, New York 10004. The following are named as defendants in the
complaint:
* Caldera
* Ransom H. Love
* Alan Hansen
* Ralph J. Yarro III
* Raymond J. Noorda
* Thomas P. Raimondi, Jr.
* FleetBoston Robertson Stephens Inc.
* Bear, Stearns & Co., Inc.
* Soundview Technology Group, Inc., and
* First Security Van Kasper.
The complaint charges defendants with violations of the Securities
Act of 1933 and the Securities Exchange Act of 1934 for issuing a
Registration Statement and Prospectus that contained materially
false and misleading information and failed to disclose material
information. The Prospectus was issued in connection with Caldera's
initial public offering of 5 million shares of common stock at
$14.00 per share that was completed on or about March 21, 2000.
The complaint alleges that the Prospectus was false and misleading
because it failed to disclose
(i) the Underwriter Defendants' agreement with certain
investors to provide them with significant amounts of restricted
Caldera shares in the IPO in exchange for exorbitant and
undisclosed commissions; and
(ii) the agreement between the Underwriter Defendants and
certain of its customers whereby the Underwriter Defendants would
allocate shares in the IPO to those customers in exchange for the
customers' agreement to purchase Caldera shares in the after-market
at pre-determined prices.
The SEC is investigating underwriting practices in connection with
several other initial public offerings, including the offerings of
VA Linux Systems, Inc., Ariba Inc. and United Parcel Service, Inc.
Persons who purchased or otherwise acquired Caldera securities
during the Class Period and either lost money on the transaction or
still hold the securities may wish to request court appointment as
lead plaintiff no later than September 10, 2001.
For more information, contact Ms. Linda Flood, Director of
Shareholder Relations, at Bernstein Liebhard & Lifshitz, LLP, 10
East 40th Street, New York, New York 10016, (800) 217-1522 or 212-
779-1414 or by e-mail at HYPERLINK "mailto:CALD@bernlieb.com"
CALD@bernlieb.com , or visit the firm's website at
www.bernlieb.com.
CHORDIANT SOFTWARE: Bernstein Liebhard Files Securities Suit in NY
------------------------------------------------------------------
Bernstein Liebhard & Lifshitz, LLP filed a securities class action
lawsuit on behalf all persons who acquired Chordiant Software, Inc.
(NASDAQ: CHRD - news) securities between February 14, 2000 and
December 6, 2000. A copy of the complaint is available from the
Court or from Bernstein Liebhard & Lifshitz, LLP.
The case is pending in the United States District Court for the
Southern District of New York located at 500 Pearl Street, New
York, New York 10004. The following are named as defendants in the
complaint:
* Chordiant
* Samuel T. Spadafora
* Steven R. Springsteel
* Joseph F. Tumminaro
* Oliver D. Curme
* Kathryn C. Gould
* Mitchell Kertzman
* FleetBoston Robertson Stephens, Inc.
* BancBoston Robertson Stephens International Limited
* Dain Rauscher Incorporated, and
* Thomas Weisel Partners, LLC.
The complaint charges defendants with violations of the Securities
Act of 1933 and the Securities Exchange Act of 1934 for issuing a
Registration Statement and Prospectus that contained materially
false and misleading information and failed to disclose material
information. The Prospectus was issued in connection with
Chordiant's initial public offering of 4.5 million shares of common
stock at $18.00 per share that was completed on or about February
14, 2000.
The complaint alleges that the Prospectus was false and misleading
because it failed to disclose
(i) the Underwriter Defendants' agreement with certain
investors to provide them with significant amounts of restricted
Chordiant shares in the IPO in exchange for exorbitant and
undisclosed commissions; and
(ii) the agreement between the Underwriter Defendants and
certain of its customers whereby the Underwriter Defendants would
allocate shares in the IPO to those customers in exchange for the
customers' agreement to purchase Chordiant shares in the after-
market at pre-determined prices.
The SEC is investigating underwriting practices in connection with
several other initial public offerings, including the offerings of
VA Linux Systems, Inc., Ariba Inc. and United Parcel Service, Inc.
Plaintiff seeks to recover damages on behalf of all those who
purchased or otherwise acquired Chordiant securities during the
Class Period.
COMMERCE ONE: Wechsler Harwood Files Securities Suit
----------------------------------------------------
Wechsler Harwood Halebian & Feffer LLP has been retained to
investigate claims or filed class action complaints involving the
securities of Commerca One, Inc. (NASDAQ: CMRC - news) on behalf of
investors who purchased securities from July 1, 1999 to December 6,
2000. Due date is on August 20, 2001.
For more information, contact Wechsler Harwood Halebian & Feffer
LLP, 488 Madison Avenue, New York, New York 10022, by calling toll
free 877-935-7400 or Ramon Pinon IV, Shareholder Relations
Department - Network Commerce, rpinoniv@whhf.com.
DELTATHREE INC: Wechsler Harwood Sets Class Period
--------------------------------------------------
Wechsler Harwood Halebian & Feffer LLP has been retained to
investigate claims or filed class action complaints involving the
securities of deltathree, Inc. (NASDAQ: DDDC - news) on behalf of
investors who purchased securities from November 22, 1999 to June
12, 2001. Due date is on August 12, 2001.
For more information, contact Wechsler Harwood Halebian & Feffer
LLP, 488 Madison Avenue, New York, New York 10022, by calling toll
free 877-935-7400 or Craig Lowther, Shareholder Relations
Department, deltathree, Inc., clowther@whhf.com.
DIGITAL IMPACT: Schiffrin & Barroway Files Suit in S.D. NY
----------------------------------------------------------
The law firm of Schiffrin & Barroway, LLP filed a class action
lawsuit in the United States District Court for the Southern
District of New York, on behalf of all purchasers of the common
stock of Digital Impact, Inc. (Nasdaq: DIGI) from November 22, 1999
through December 6, 2000, inclusive.
The complaint charges Digital and certain of its officers and
directors with issuing false and misleading statements concerning
its business and financial condition. Specifically, the complaint
alleges that on or about November 22, 1999, Digital Impact
commenced an initial public offering of 4,500,000 shares of common
stock at an offering price of $15.00 per share. In connection
therewith, Digital Impact filed a registration statement, which
incorporated a prospectus, with the SEC.
The complaint further alleges that the Prospectus was materially
false and misleading because it failed to disclose, among other
things, that:
(i) Credit Suisse First Boston Corp. had solicited and
received excessive and undisclosed commissions from certain
investors in exchange for which Credit Suisse allocated to those
investors material portions of the restricted number of Digital
Impact shares issued in connection with the Digital Impact IPO; and
(ii) Credit Suisse had entered into agreements with customers
whereby Credit Suisse agreed to allocate Digital Impact shares to
those customers in the Digital Impact IPO in exchange for which the
customers agreed to purchase additional Digital Impact shares in
the aftermarket at pre-determined prices.
Members of the class described above may request court appointment
as lead plaintiff not later than August 6, 2001. For more
information on this action, contact Marc A. Topaz, Esq. or Stuart
L. Berman, Esq. of Schiffrin & Barroway, LLP, Three Bala Plaza
East, Suite 400, Bala Cynwyd, PA 19004toll free at 1-888-299-7706
or 1-610-667-7706, or via e-mail at info@sbclasslaw.com.
DIGITAS INC: Milberg Weiss Files Securities Suit in S.D. NY
-----------------------------------------------------------
The law firm of Milberg Weiss Bershad Hynes & Lerach LLP filed a
class action lawsuit on July 11, 2001, on behalf of purchasers of
the securities of Digitas Inc. (NASDAQ: DTAS - news) between March
14, 2000 and December 6, 2000, inclusive.
A copy of the complaint filed in this action is available from the
Court, or can be viewed on Milberg Weiss' website at:
http://www.milberg.com/digitas/
The action alleges the following as defendants:
* Digitas
* Morgan Stanley & Co. Inc.
* Salomon Smith Barney Inc.
* Bear, Stearns & Co., Inc.
* FleetBoston Robertson Stephens Inc.
* David W. Kenny, and
* Michael Goss
and is pending in the United States District Court, Southern
District of New York, located at 500 Pearl Street, New York, NY
10007.
On or about March 14, 2000 Digitas commenced an initial public
offering, and, together with certain selling shareholders, sold
9,300,000 shares of Digitas common stock at an offering price of
$24 per share. In connection therewith, Digitas filed a
registration statement, which incorporated a prospectus, with the
SEC.
The complaint further alleges that the Prospectus was materially
false and misleading because it failed to disclose, among other
things, that:
(i) the Underwriter Defendants (Morgan Stanley, Salomon Smith
Barney, Bear Stearns and Robertson Stephens) had solicited and
received excessive and undisclosed commissions from certain
investors in exchange for which the Underwriter Defendants
allocated to those investors material portions of the restricted
number of Digitas shares issued in connection with the Digitas IPO;
and
(ii) the Underwriter Defendants had entered into agreements
with customers whereby the Underwriter Defendants agreed to
allocate Digitas shares to those customers in the Digitas IPO in
exchange for which the customers agreed to purchase additional
Digitas shares in the aftermarket at pre-determined prices.
Investors who bought the securities of Digitas between March 14,
2000 and December 6, 2000 may, no later than August 28, 2001
request court appointment as lead plaintiff. For more information,
contact attorneys Steven G. Schulman or Samuel H. Rudman, of
Milberg Weiss Bershad Hynes & Lerach LLP, One Pennsylvania Plaza,
49th fl. New York, NY, 10119-0165, Phone number: (800) 320-5081,
Email: HYPERLINK "mailto:digitascase@milbergNY.com"
digitascase@milbergNY.com ,
Website: http://www.milberg.com
DIGITAS INC: Wolf Haldenstein Files Complaint in S.D. NY
--------------------------------------------------------
Wolf Haldenstein Adler Freeman & Herz LLP has filed a class action
lawsuit in the United States District Court for the Southern
District of New York. The suit is on behalf of purchasers of
Digitas Inc. [Nasdaq: DTAS] between March 13, 200 and December 6,
2000, inclusive, against defendants Digitas, certain of its
officers and directors, and its underwriters.
The case name and index number are Kuritzky v. Digitas Inc. et al,
(01-CV-6283). A copy of the complaint filed in this action is
available from the Court, or can be viewed on the Wolf Haldenstein
Adler Freeman & Herz LLP website at http://www.whafh.com.
The complaint alleges defendants violated the federal securities
laws by issuing and selling Digitas common stock pursuant to the
March 13, 2000 IPO without disclosing to investors that some of the
underwriters in the offering, including the lead underwriters, had
solicited and received excessive and undisclosed commissions from
certain investors.
Specifically, the complaint alleges that in exchange for the
excessive commissions, defendants allocated Digitas shares to
customers at the IPO price. To receive the allocations (i.e., the
ability to purchase shares) at the IPO price, the underwriters'
brokerage customers had to agree to purchase additional shares in
the aftermarket at progressively higher prices. The requirement
that customers make additional purchases at progressively higher
prices as the price of Digitas stock rocketed upward (a practice
known on Wall Street as "laddering") was intended to (and did)
drive Digitas' share price up to artificially high levels. This
artificial price inflation enabled both the underwriters and their
customers to reap enormous profits by buying stock at the IPO price
and then selling it later for a profit at inflated aftermarket
prices.
Investors who purchased Digitas securities during the class period
may request court appointment as lead plaintiff by August 28, 2001.
For more information, contact Wolf Haldenstein Adler Freeman & Herz
LLP at 270 Madison Avenue, New York, New York 10016. Telephone at
(800) 575-0735 (Fred Taylor Isquith, Esq., Gustavo Bruckner Esq.,
Thomas Burt, Esq., Michael Miske, or George Peters), via e-mail at
classmember@whafh.com or visit the firm's website at
http://www.whafh.com.Your e-mail should refer to Digitas.
DISABILITY LITIGATION: Ruling Expands Suit for Disabled Children
----------------------------------------------------------------
Judge Gene Carter, of the U.S. District Court in Bangor, Maine
recently issued a ruling in a case brought by two Augusta-area
families to win home care for two children disabled due to mental
impairment.
Judge Carter ruled that all children with mental impairment who are
not getting timely in-home services from the state will be
considered plaintiffs in the case filed a year ago
by the two families from Augusta. This ruling opens the families'
disability lawsuit to possibly hundreds of other similarly disabled
children in Maine, according to a recent report appearing in the
Portland Press Herald.
The two families say that the state has failed to provide the
"timely, adequate and reliable" services for their children that
are required under federal law. The lawsuit originated with Jill
Risinger, 16, of Winslow, who has Angelman syndrome, a form of
mental retardation. Her case was joined by the family of Eric
Fitzpatrick, 14, who has a variety of conditions, including
attention deficit hyperactivity disorder, post-traumatic stress
disorder and speech and language difficulties.
The number of people who would be included in the lawsuit has not
been determined, but court documents suggest it falls between 400
and 700 statewide. The ultimate cost to the state is also unknown.
The state currently spends $13 million providing in-home care to
about 1,400 people.
The families are not seeking money, said Margaret Minster O'Keefe,
a member of the plaintiffs' legal team. They are asking the court
to mandate reforms to the system for providing in-home care for
children with mental disabilities. "It is really the right of the
children to receive these necessary services to assist them in
becoming fully functioning adults, or as fully functioning as they
can be," O'Keefe said. In addition, said O'Keefe, the case is not
likely to have a large impact on Maine taxpayers, because the
services the plaintiffs are seeking come through the Medicaid
program, which receives two-thirds of its funding from the federal
government.
The case is expected to go to trial this year in U.S. District
Court in Bangor, Maine. And state officials have said it is too
early to determine whether the case would be settled with a consent
decree, like those filed by the residents of the Augusta Mental
Health Institute and the Pineland Center, the state's former
facility for people with mental retardation.
DRKOOP.COM INC: Stull Stull Files Shareholder Suit in S.D. NY
-------------------------------------------------------------
A class action lawsuit was filed on July 11, 2001, in the United
States District Court for the Southern District of New York, on
behalf of purchasers of Drkoop.com, Inc. (OTCBB:KOOP) common stock
between June 8, 1999 and December 6, 2000, inclusive.
The complaint alleges that defendants
* Drkoop.com
* C. Everett Koop, M.D.
* John F. Zaccaro
* Donald W. Hackett
* Susan M. Georgen-Saad
* Jeffrey C. Ballowe
* Mardian J. Blair
* G. Carl Everett, Jr.
* Richard D. Helppie, Jr., and
* Nancy L. Snyderman, M.D.
violated the federal securities laws by issuing and selling
Drkoop.com common stock pursuant to the June 8, 1999 IPO without
disclosing to investors that some of the underwriters in the
offering, including the lead underwriters, had solicited and
received excessive and undisclosed commissions from certain
investors.
The complaint alleges that, in exchange for the excessive
commissions, members of the underwriting group Bear, Stearns & Co.
Inc. and Hambrecht & Quist LLC allocated Drkoop.com shares to
customers at the IPO price of $9.00 per share. To receive the
allocations (i.e., the ability to purchase shares) at $9.00, the
underwriters' brokerage customers had to agree to purchase
additional shares in the aftermarket at progressively higher
prices. The requirement that customers make additional purchases at
progressively higher prices as the price of Drkoop.com stock
rocketed upward (a practice known on Wall Street as laddering) was
intended to (and did) drive Drkoop.com's share price up to
artificially high levels. This artificial price inflation, the
complaint alleges, enabled both the underwriters and their
customers to reap enormous profits by buying stock at the $9.00 IPO
price and then selling it later for a profit at inflated
aftermarket prices. The aftermarket stock price rose as high as
$20.25 on June 9, 1999, its first day of trading, and which
subsequently, on July 6, 1999, rose to a peak price of $45.75.
Rather than allowing their customers to keep their profits from the
IPO, the complaint alleges, the underwriters required their
customers to kick back some of their profits in the form of secret
commissions. These secret commission payments were sometimes
calculated after the fact based on how much profit each investor
had made from his or her IPO stock allocation.
The complaint further alleges defendants violated the Securities
Act of 1933 because the Prospectus distributed to investors and the
Registration Statement filed with the SEC in order to gain
regulatory approval for the Drkoop.com offering contained material
misstatements regarding the commissions that the underwriters would
derive from the IPO transaction. It failed to disclose the
additional commissions and laddering scheme discussed above.
Buyers of the common stock of Drkoop.com between June 8, 1999 and
December 6, 2000 may request court appointment as lead plaintiff no
later than 60 days from July 11, 2001. For more information on this
action, contact Tzivia Brody, Esq. at Stull, Stull & Brody by
calling toll-free 1-800-337-4983, or by e-mail at SSBNY@aol.com, or
by fax at 212/490-2022, or by writing to Stull, Stull & Brody, 6
East 45th Street, New York, NY 10017.
EL SITIO: Wolf Haldenstein Files Shareholder Suit in S.D. NY
------------------------------------------------------------
Wolf Haldenstein Adler Freeman & Herz LLP has filed a class action
lawsuit in the United States District Court for the Southern
District of New York, on behalf of purchasers of El Sitio, Inc.
(Nasdaq: LCTO - news) between December 9, 1999 and December 6,
2000, inclusive. The suit is against defendants El Sitio, certain
of its officers and directors, and its underwriters.
The case name and index number are Foster and Walls v. El Sitio,
Inc. et al, (01-CV-6276). A copy of the complaint filed in this
action is available from the Court, or can be viewed on the Wolf
Haldenstein Adler Freeman & Herz LLP website at
http://www.whafh.com.
The complaint alleges defendants violated the federal securities
laws by issuing and selling El Sitio common stock pursuant to the
December 9, 1999 IPO without disclosing to investors that some of
the underwriters in the offering, including the lead underwriters,
had solicited and received excessive and undisclosed commissions
from certain investors.
Specifically, the complaint alleges that in exchange for the
excessive commissions, defendants allocated El Sitio shares to
customers at the IPO price. To receive the allocations (i.e., the
ability to purchase shares) at the IPO price, the underwriters'
brokerage customers had to agree to purchase additional shares in
the aftermarket at progressively higher prices. The requirement
that customers make additional purchases at progressively higher
prices as the price of El Sitio stock rocketed upward (a practice
known on Wall Street as "laddering") was intended to (and did)
drive El Sitio's share price up to artificially high levels. This
artificial price inflation enabled both the underwriters and their
customers to reap enormous profits by buying stock at the IPO price
and then selling it later for a profit at inflated aftermarket
prices.
Persons who purchased El Sitio securities during the class period,
you may request that the Court appoint you as lead plaintiff by
August 10, 2001. For more information, contact Wolf Haldenstein
Adler Freeman & Herz LLP at 270 Madison Avenue, New York, New York
10016, by telephone at (800) 575-0735 (Fred Taylor Isquith, Esq.,
Gustavo Bruckner Esq., Thomas Burt, Esq., Michael Miske, or George
Peters), via e-mail at classmember@whafh.com or visit the firm's
website at http://www.whafh.com.Your e-mail should refer to El
Sitio.
EXPEDIA INCORPORATED: Schiffrin & Barroway Files Suit in S.D. NY
----------------------------------------------------------------
The law firm of Schiffrin & Barroway, LLP filed a class action
lawsuit in the United States District Court for the Southern
District of New York, on behalf of all purchasers of the common
stock of Expedia, Inc. (Nasdaq: EXPE) from November 9, 1999 through
December 6, 2000, inclusive.
The complaint charges Expedia and certain of its officers and
directors with issuing false and misleading statements concerning
its business and financial condition. Specifically, the complaint
alleges that on or about November 9, 1999, Expedia commenced an
initial public offering of 5,200,000 of its shares of common stock
at an offering price of $14 per share. In connection therewith,
Expedia filed a registration statement, which incorporated a
prospectus, with the SEC.
The complaint further alleges that the Prospectus was materially
false and misleading because it failed to disclose, among other
things, that:
(i) defendants had solicited and received excessive and
undisclosed commissions from certain investors in exchange for
which defendants allocated to those investors material portions of
the restricted number of Expedia shares issued in connection with
the Expedia IPO; and
(ii) defendants had entered into agreements with customers
whereby defendants agreed to allocate Expedia shares to those
customers in the Expedia IPO in exchange for which the customers
agreed to purchase additional Expedia shares in the aftermarket at
pre-determined prices. As further alleged in the complaint, the SEC
is investigating underwriting practices in connection with several
other initial public offerings.
Members of the class described above may, not later than August 6,
2001, move the Court to serve as lead plaintiff of the class. For
more information contact Marc A. Topaz, Esq. or Stuart L. Berman,
Esq. of Schiffrin & Barroway, LLP toll free at 1-888-299-7706 or 1-
610-667-7706, or via e-mail at info@sbclasslaw.com.
FLEMING COMPANIES: Agrees to $16-Million Settlement
---------------------------------------------------
Lewisville-based grocery wholesaler Fleming Cos. Inc. (NYSE: FLM)
has agreed to pay $16 million to settle a class-action lawsuit, the
Dallas Business Journal reports. The lawsuit, which was initiated
in a Utah federal court, alleged Fleming overcharged independent
grocers in Utah, Idaho, Nevada and Wyoming. The grocers were
serviced from the company's Salt Lake City warehouse.
The lawsuit, which involved 240 grocers who purchased products from
Fleming from 1984 to 1995, was consolidated in federal court in
Kansas City, Mo. with several similar suits involving grocers from
other states, the Journal said. A final hearing on the settlement
is scheduled Sept. 10 in Kansas City, with notices of the class
action and the settlement to be send out next week. A notice to
identify grocers in the class will also be published.
GADZOOX NETWORKS: Schiffrin & Barroway File Suit in S.D. NY
-----------------------------------------------------------
The law firm of Schiffrin & Barroway, LLP filed a class action
lawsuit in the United States District Court for the Southern
District of New York, on behalf of all purchasers of the common
stock of Gadzoox Networks, Inc. (Nasdaq: ZOOX) from July 19, 1999
through December 6, 2000, inclusive.
The complaint charges Gadzoox and certain of its officers and
directors with issuing false and misleading statements concerning
its business and financial condition. Specifically, the complaint
alleges that on or about July 19, 1999, Gadzoox commenced an
initial public offering of 3,500,000 of its shares of common stock
at an offering price of $21.00 per share. In connection therewith,
Gadzoox filed a registration statement, which incorporated a
prospectus), with the SEC.
The complaint further alleges that the Prospectus was materially
false and misleading because it failed to disclose, among other
things, that:
(i) Credit Suisse First Boston Corp. and BancBoston Robertson
Stephens had solicited and received excessive and undisclosed
commissions from certain investors in exchange for which Credit
Suisse and Robertson Stephens allocated to those investors material
portions of the restricted number of Gadzoox shares issued in
connection with the Gadzoox IPO; and
(ii) Credit Suisse and Robertson Stephens had entered into
agreements with customers whereby Credit Suisse and Robertson
Stephens agreed to allocate Gadzoox shares to those customers in
the Gadzoox IPO in exchange for which the customers agreed to
purchase additional Gadzoox shares in the aftermarket at pre-
determined prices.
Members of the class described above may, not later than August 6,
2001, move the Court to serve as lead plaintiff of the class. For
more information on this action, contact Schiffrin & Barroway, LLP
(Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) toll free at 1-888-
299-7706 or 1-610-667-7706, or via e-mail at info@sbclasslaw.com.
IBASIS INC: Bernstein Liebhard File Securities Suit in S.D. NY
--------------------------------------------------------------
A securities class action lawsuit was commenced on behalf all
persons who acquired iBasis, Inc. (NASDAQ: IBAS - news) securities
between November 10, 1999 and December 6, 2000. A copy of the
complaint is available from the Court or from Bernstein Liebhard &
Lifshitz, LLP.
The case is pending in the United States District Court for the
Southern District of New York located at 500 Pearl Street, New
York, New York 10004. The following are named as defendants in the
complaint:
* iBasis
* Ofer Gneezy
* Michael J. Hughes
* Gordon J. VanderBrug
* Robert Maginn
* Charles S. Houser
* Izhar Armony
* John Jarve
* Charles H. Corfield
* BancBoston Robertson Stephens, Inc.
* Hambrecht & Quist LLC, and
* U.S. Bancorp Piper Jaffray Inc
The complaint charges defendants with violations of the Securities
Act of 1933 and the Securities Exchange Act of 1934 for issuing a
Registration Statement and Prospectus that contained materially
false and misleading information and failed to disclose material
information. The Prospectus was issued in connection with iBasis's
initial public offering of 6.8 million shares of common stock at
$16.00 per share that was completed on or about November 10, 1999.
The complaint alleges that the Prospectus was false and misleading
because it failed to disclose
(i) the Underwriter Defendants' agreement with certain
investors to provide them with significant amounts of restricted
iBasis shares in the IPO in exchange for exorbitant and undisclosed
commissions; and
(ii) the agreement between the Underwriter Defendants and
certain of its customers whereby the Underwriter Defendants would
allocate shares in the IPO to those customers in exchange for the
customers' agreement to purchase iBasis shares in the after-market
at pre- determined prices.
The SEC is investigating is investigating underwriting practices in
connection with several other initial public offerings, including
the offerings of VA Linux Systems, Inc., Ariba Inc. and United
Parcel Service, Inc.
Investors who purchased or otherwise acquired iBasis securities
during the Class Period and either lost money on the transaction or
still hold the securities may wish to request court appointment to
serve as lead plaintiff no later than September 10, 2001.
For more information, contact Ms. Linda Flood, Director of
Shareholder Relations, at Bernstein Liebhard & Lifshitz, LLP, 10
East 40th Street, New York, New York 10016, (800) 217-1522 or 212-
779-1414 or by e-mail at HYPERLINK "mailto:IBAS@bernlieb.com"
IBAS@bernlieb.com , or visit the firm's website at
www.bernlieb.com.
IMANAGE INC: Bernstein Liebhard Files Suit in S.D. NY
-----------------------------------------------------
A securities class action lawsuit was commenced on behalf all
persons who acquired iManage, Inc. (NASDAQ: IMAN - news) securities
between November 17, 1999 and December 6, 2000. A copy of the
complaint is available from the Court or from Bernstein Liebhard &
Lifshitz, LLP.
The case is pending in the United States District Court for the
Southern District of New York located at 500 Pearl Street, New
York, New York 10004. The following are named as defendants in the
complaint:
* iManage
* Manhood Panjwani
* Mark Culhane
* Rafiq Mohammadi
* Mark Perry
* Moez Virani
* BancBoston Robertson Stephens, Inc.
* C.E. Unterberg
* Towbin, and
* U.S. Bancorp Piper Jaffray Inc.
The complaint charges defendants with violations of the Securities
Act of 1933 and the Securities Exchange Act of 1934 for issuing a
Registration Statement and Prospectus that contained materially
false and misleading information and failed to disclose material
information. The Prospectus was issued in connection with iManage's
initial public offering of 3.6 million shares of common stock at
$11.00 per share that was completed on or about November 17, 1999.
The complaint alleges that the Prospectus was false and misleading
because it failed to disclose
(i) the Underwriter Defendants' agreement with certain
investors to provide them with significant amounts of restricted
iManage shares in the IPO in exchange for exorbitant and
undisclosed commissions; and
(ii) the agreement between the Underwriter Defendants and
certain of its customers whereby the Underwriter Defendants would
allocate shares in the IPO to those customers in exchange for the
customers' agreement to purchase iManage shares in the after-market
at pre-determined prices.
The SEC is investigating is investigating underwriting practices in
connection with several other initial public offerings, including
the offerings of VA Linux Systems, Inc., Ariba Inc. and United
Parcel Service, Inc.
Persons who purchased or otherwise acquired iManage securities
during the Class Period and either lost money on the transaction or
still hold the securities may wish to request court appointment as
lead plaintiff no later than September 10, 2001. For more
information, contact Ms. Linda Flood, Director of Shareholder
Relations, at Bernstein Liebhard & Lifshitz, LLP, 10 East 40th
Street, New York, New York 10016, (800) 217-1522 or 212-779-1414 or
by e-mail at IMAN@bernlieb.com, or visit the firm's website at
www.bernlieb.com.
IMMUNE RESPONSE: Stull Stull Files S-holder Suit, Includes Agouron
------------------------------------------------------------------
Stull, Stull & Brody filed a class action complaint on behalf of
all persons who acquired Immune Response Corp. (NASDAQ:IMNR)
securities between May 31, 1999 and July 6, 2001, inclusive. The
complaint charges Immune Response Corp. and its top officer and
Agouron Pharmaceuticals, Inc. and its top officer with violations
of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
Immune is a biopharmaceutical company developing immune-based
therapies to induce specific T cell response for the treatment of
HIV, autoimmune diseases, gene therapy and cancer. Immune's major
product is Remune, an injectable HIV-1 immunogen-based treatment
designed to slow or stop the progression of HIV infections into
AIDS. The company is also developing and testing therapeutic
products for other autoimmune conditions. Agouron Pharmaceuticals,
Inc. was, until July 6, 2001, Immune's partner in developing Remune
for commercial distribution and sale.
The Complaint charges that Immune and Agouron withheld the results
of Remune's major clinical trial, and instead hyped the prospects
of Remune, even though defendants knew during the Class Period that
Remune had no effect upon people with HIV and AIDS. The Complaint
further alleges Defendants' false misrepresentations that Remune
was effective in the fight against AIDS operated to artificially
inflate the price of Immune stock.
The Complaint alleges that as a result of the defendants' conduct,
plaintiffs and other members of the Class suffered damages.
Members of the class described above may, no later than September
10, 2001, move the Court to serve as lead plaintiff. For more
information, contact Patrice L. Bishop, Esq., of Stull, Stull &
Brody at phone 888/388-4605, or e-mail pbishop@secfraud.com.
IMMUNE RESPONSE: Edward Carreiro Files Securities Suit
------------------------------------------------------
Law Offices of Edward J. Carreiro, of Hatboro, PA filed a class
action lawsuit against Immune Response Corp, and its officers. The
suit alleges violation of the federal and/or state securities laws
for those individuals who purchased the above named stock in the
class period from May 31, 1999 to July 6, 2001.
For more information, contact Edward J. Carreiro, Esquire, of The
Law Offices of Edward J. Carreiro, 41 Byberry Road, Hatboro,
Pennsylvania 19040, via email at carreirolaw@yahoo.com, or at 215-
672-7600. Please indicate the number of shares purchased.
INFOSPACE INC: Spector Roseman Files Lawsuit in Washington
----------------------------------------------------------
The law firm of Spector, Roseman & Kodroff, P.C. filed a class
action lawsuit in the United States District Court for the Western
District of Washington against defendant InfoSpace, Inc.
(Nasdaq:INSP - news) on behalf of purchasers of the stock of
InfoSpace during the period from January 26, 2000 through January
30, 2001, inclusive.
The complaint charges InfoSpace and its founder and Chairman,
Naveen Jain, with violations of the Securities Exchange Act of
1934. The complaint alleges that between January 2000 and January
2001 Defendants disseminated false and misleading information
concerning InfoSpace's actual FY 1999 and 2000 financial
performance and Defendants' expectations concerning InfoSpace's FY
2001 revenue and earnings. In fact, neither InfoSpace's reported FY
1999 and FY 2000 results nor its projected FY 2001 performance were
accurate.
Defendants' public representations were the result of Defendants'
efforts to manipulate InfoSpace's reported earnings and expected FY
2001 performance and were designed to (and did) allow:
(i) Jain to sell millions of dollars of his own InfoSpace
shares at artificially inflated prices; and
(ii) allow Defendants to complete a series of acquisitions
using shares of InfoSpace's artificially inflated stock as
currency, including the October 2000 acquisition of Go2Net.
On January 30, 2001, after Defendants had completed several
acquisitions using inflated InfoSpace shares as currency.
Defendants disclosed that, contrary to the representations made by
them during 2000, InfoSpace was experiencing strong revenue growth
during 4Q99 and FY 2000. It was said InfoSpace would continue to
post strong revenue growth through FY 2001. InfoSpace reported no
revenue growth or EPS for FY 2001, but rather declining revenue and
a significant loss for the year. As Defendants began to reveal some
of their improper conduct, including the fact that Defendants'
projected revenues and earnings estimates were false, InfoSpace's
shares fell to less than $6 per share, a 95% decline from their
Class Period high of $138-1/2 per share.
Investors who purchased InfoSpace securities during the Class
Period may, no later than August 18, 2001, move to be appointed as
a Lead Plaintiff in this class action. For more information on
this action, contact plaintiff's counsel Robert M. Roseman toll-
free at 888-844-5862 or via E-mail at
classaction@spectorandroseman.com. For more detailed information
about the firm please visit its website at
http://www.spectorandroseman.com.
INFOSPACE INC: Hagens Berman Sues For Shareholders
--------------------------------------------------
A class action has been commenced in the United States District
Court for the Western District of Washington on behalf of all
purchasers of InfoSpace, Inc. (NASDAQ: INSP - news) common stock
during the period from January 26, 2000 through January 30, 2001.
The complaint charges InfoSpace and its founder and Chairman Naveen
Jain with violations of the federal securities laws. Specifically,
plaintiffs have brought claims under sections 10(b) and 20 of the
Securities Exchange Act of 1934.
The complaint charges InfoSpace and its founder and Chairman,
Naveen Jain, with violations of the Securities Exchange Act of
1934. The complaint alleges that between January 2000 and January
2001, Defendants disseminated false and misleading information
concerning InfoSpace's actual FY 1999 and 2000 financial
performance and Defendants' expectations concerning InfoSpace's FY
2001 revenue and earnings. In fact, neither InfoSpace's reported FY
1999 and FY 2000 results nor its projected FY 2001 performance were
accurate.
Defendants' public representations were the result of Defendants'
efforts to manipulate InfoSpace's reported earnings and expected FY
2001 performance and were designed to (and did) allow:
(i) Jain to sell millions of dollars of his own InfoSpace
shares at artificially inflated prices; and
(ii) allow Defendants to complete a series of acquisitions
using shares of InfoSpace's artificially inflated stock as
currency, including the October 2000 acquisition of Go2Net.
On January 30, 2001, after Defendants had completed several
acquisitions using inflated InfoSpace shares as currency.
Defendants disclosed that the representations made by them during
2000 that InfoSpace was experiencing strong revenue growth during
4Q99, and FY 2000 and that InfoSpace would continue to post strong
revenue growth through FY 2001 were false. InfoSpace reported no
revenue growth or EPS for FY 2001, but reported declining revenue
and a significant loss for the year. As Defendants began to reveal
some of their improper conduct, including the fact that Defendants'
projected revenues and earnings estimates were false, InfoSpace's
shares fell to less than $6 per share, a 95% decline from their
Class Period high of $138-1/2 per share.
Members of the Class described above may move the Court to serve as
lead plaintiff of the Class within 60 days. For more information,
contact plaintiffs' counsel, Steve Berman or Karl Barth at (206)
623-7292 or toll-free at (888) 381-2889 or via e-mail at
Karl@Hagens-Berman.com.
INTEGRATED INFORMATION: Edward Carreiro Files Securities Suit
-------------------------------------------------------------
Law Offices of Edward J. Carreiro, of Hatboro, PA, filed a class
action lawsuit against Integrated Information Systems, Inc. and its
officers resulting from violation of the federal and/or state
securities laws for individuals who purchased the above named
stock. For more information, contact Edward J. Carreiro, Esquire,
of The Law Offices of Edward J. Carreiro, 41 Byberry Road, Hatboro,
Pennsylvania 19040, via email at carreirolaw@yahoo.com, or at 215-
672-7600.
INTERNET CAPITAL:Lovell, Sirota Firms Amend Suit, Create New Class
------------------------------------------------------------------
The law firms of Lovell & Stewart, LLP and Sirota & Sirota, LLP
filed an amended complaint on July 9, 2001 in the class action
lawsuit against Internet Capital Group, Inc. (Nasdaq: ICGE),
certain of its officers and directors, and underwriters of the
initial public offering and secondary offering of ICGE stock. The
amended complaint asserts claims on behalf of all persons and
entities who purchased or otherwise acquired call options on
Internet Capital Group common stock between August 4, 1999 and May
9, 2001, inclusive. The lawsuit asserts claims under Sections 10(b)
and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5
promulgated by the SEC thereunder and Sections 11, 12(2) and 15 of
the Securities Act of 1933 and seeks to recover damages. Any member
of the class of call option purchasers may move the Court to be
named lead plaintiff. Persons who wish to serve as lead plaintiff
must move the Court no later than September 10, 2001.
The action, Michael G. Ryan, et al., v. Internet Capital Group
Inc., et al., is pending in the U.S. District Court for the
Southern District of New York, Docket No. 01-CV-3975 (SAS). The
case has been assigned to the Hon. Shira A. Scheindlin, U.S.
District Judge. In addition to the new class of call options
purchasers, the amended complaint also asserts claims on behalf of
a second class composed of all persons who purchased, converted,
exchanged or otherwise acquired ICGE's common stock between the IPO
on August 4, 1999 and May 11, 2000. May 11, 2000 was the day before
FleetBoston Robertson Stephens became the first brokerage firm on
Wall Street to downgrade its analyst rating for ICGE. A third class
composed of all persons who purchased, converted, exchanged or
otherwise acquired ICGE common stock between May 12, 2000 and May
9, 2001, was also created.
The amended complaint alleges ICGE and certain of its officers and
directors violated the federal securities laws by issuing and
selling ICGE common stock pursuant to the IPO and secondary
offering without disclosing to investors that the co-lead
underwriters of the IPO had solicited and received excessive and
undisclosed commissions from certain investors. In exchange for the
excessive commissions, defendant IPO underwriters Merrill Lynch and
FleetBoston Robertson Stephens allocated ICGE shares to customers
at the IPO price of $12.00 per share. To receive the allocations
(i.e., the ability to purchase shares) at $12.00, the defendant IPO
underwriters' brokerage customers had to agree to purchase
additional shares in the aftermarket at progressively higher
prices.
The requirement that customers make additional purchases at
progressively higher prices as the price of ICGE stock rocketed
upward (a practice known on Wall Street as laddering) was intended
to (and did) drive ICGE's share price up to artificially high
levels. This artificial price inflation, the amended complaint
alleges, enabled both the underwriters and their customers to reap
enormous profits by buying ICGE stock at the $12.00 IPO price. It
is alleged they sold it later for a profit at inflated aftermarket
prices, which rose as high as $27.00 during its first day of
trading and which subsequently rose to over $200.00 per share (the
equivalent of over $400.00 per share on a pre-split basis) during
December 1999.
Rather than allowing their customers to keep their profits from the
IPO, the complaint alleges, the defendant underwriters required
their customers to kick back some of their profits in the form of
secret commissions. These secret commission payments were sometimes
calculated after the fact based on how much profit each investor
had made from his or her IPO stock allocation.
The amended complaint further alleges ICGE was able to price the
secondary offering of ICGE stock at an artificially high $108.00
per share due to the continued effects of the foregoing violations.
The complaint also alleges states call options on ICGE common stock
traded at artificially high prices during the class period due to
the foregoing laddering scheme. In addition, the amended complaint
alleges that analysts employed by defendants strongly recommended
and continued to recommend ICGE stock throughout the class periods
to their unsuspecting brokerage customers and to the public as a
sound investment in order to:
1) keep the price of ICGE shares as high as possible while the
defendants marketed and sold the ICGE secondary offering; and
2) provide defendants Merrill Lynch, FleetBoston Robertson
Stephens, Goldman Sachs and Lehman Brothers with sufficient time to
dump ICGE stock that they held in their own accounts through Rule
144 sales at artificially high prices.
Investors who purchased ICGE common stock or ICGE call options
during the period August 4, 1999 to May 9, 2001 may contact
Christopher J. Gray of Lovell & Stewart at (212) 608-1900, or email
sklovell@aol.com for more information regarding the class action
lawsuit. Contact Howard B. Sirota or Saul Roffe of Sirota & Sirota,
LLP at 212/425-9055, or email info@sirotalaw.com. Investors can
also visit Lovell & Stewart's web site at www.lovellstewart.com or
Sirota & Sirota's web site at www.sirotalaw.com to view a copy of
the amended complaint.
INTERVOICE-BRITE INC: Faruqi & Faruqi File Suit in Texas Court
--------------------------------------------------------------
Faruqi & Faruqi, LLP filed a class action lawsuit in the United
States District Court for the Northern District of Texas on behalf
of all purchasers of InterVoice-Brite, Inc. (Nasdaq:INTV - news)
common stock between October 12, 1999 and June 6, 2000, inclusive.
A copy of the complaint filed in this action can be viewed on the
firm's Website at www.faruqilaw.com
The complaint charges defendants with violations of federal
securities laws by, among other things, issuing a series of
materially false and misleading press releases concerning
InterVoice's business, its financial results, the success of its
integration with Brite and its prospects. As a result, InterVoice's
stock was artificially inflated to as high as $38.75 per share,
allowing defendants to collectively sell 525,916 shares of their
InterVoice stock for $13.4 million in proceeds. On June 6, 2000,
however, InterVoice shocked the market, revealing that it would
report a loss of $0.03 to $0.05 and revenues of only $67-$68
million for the 1st Q F01 rather than the EPS of $0.22 and revenues
of $89 million defendants had led the market to expect. Defendants
blamed the shortfall on sales people who had begun leaving the
Company in the months prior to this disclosure, some of which were
unhappy with the integrated Company. Defendants also claimed they
had implemented new guidance from the SEC, Staff Accounting
Bulletin No. 101, Revenue Recognition in Financial Statements
earlier than planned. These revelations caused InterVoice stock to
plummet to as low as $5.75 per share before closing at $6.125, a
decline of 85% from its Class Period high on volume of 15.5 million
shares.
Plaintiff seeks to recover damages on behalf of himself and all
other individual and institutional investors who purchased or
otherwise acquired InterVoice securities between October 12, 1999
and June 6, 2000, excluding defendants and their affiliates.
Persons who purchased InterVoice securities during the Class Period
may, not later than August 6, 2001, move the court to serve as lead
plaintiff of the class. For more information, contact Anthony
Vozzolo, Esq. or Shane Rowley, Esq. of Faruqi & Faruqi, LLP, 320
East 39th Street, New York, NY 10016, Telephone: (877) 247-4292 or
(212) 983-9330, e-mail Avozz@faruqilaw.com, Srowley@faruqilaw.com,
www.faruqilaw.com
IPO UNDERWRITERS: Stull Stull Says Papers Support Allegations
-------------------------------------------------------------
Stull, Stull & Brody announces that allegations in cases filed by
it are supported by recent articles that have appeared in The New
York Times and The Wall Street Journal about investigations by the
United States Justice Department and the Securities Exchange
Commission into the manipulation of IPOs. Among the underwriters
named as defendants are:
* Credit Suisse First Boston Corp.
* The Goldman Sachs Group, Inc.
* Lehman Brothers, Inc.
* Merrill Lynch, Pierce, Fenner & Smith, Inc.
* Morgan Stanley Dean Witter & Co.
* BancBoston Robertson, Stephens, Inc., and
* Salomon Smith Barney, Inc.
The lawsuits allege that defendants violated the federal securities
laws by issuing and selling common stock pursuant to the IPOs
without disclosing to investors that some of the underwriters in
the offering, including the lead underwriters, had solicited and
received excessive and undisclosed commissions from certain
investors.
Specifically, the complaints allege that in exchange for the
excessive commissions, defendants allocated shares to customers at
the IPO price. To receive the allocations (i.e., the ability to
purchase shares) at the IPO price, the underwriters= brokerage
customers had to agree to purchase additional shares in the
aftermarket at progressively higher prices. The requirement that
customers make additional purchases at progressively higher prices
as the price of IPO stock rocketed upward (a practice known on Wall
Street as laddering) was intended to (and did) drive the share
price up to artificially high levels. This artificial price
inflation enabled both the underwriters and their customers to reap
enormous profits by buying stock at the IPO price and then selling
it later for a profit at inflated aftermarket prices.
Among the stocks alleged to have been manipulated were the shares
of the following:
* Stamps.com, Inc. (NASDAQ: STMP - news) for the class period
between June 24, 1999 and May 16, 2001, inclusive;
* Drugstore.com, Inc. (NASDAQ: DSCM - news) for the class
period between July 28, 1999 and June 15, 2001, inclusive;
* Aether Systems, Inc. (NASDAQ: AETH - news) for the class
period between October 21, 1999 and June 15, 2001,
inclusive; and
* Digitas, Inc. (NASDAQ: DTAS - news) for the class period
between March 13, 2000 and June 26, 2001, inclusive.
For more information, contact Tzivia Brody, Esq. at Stull, Stull &
Brody by calling toll-free 1-800-337-4983, or by e-mail at
SSBNY@aol.com, or by fax at 212/490-2022, or by writing to Stull,
Stull & Brody, 6 East 45th Street, New York, NY 10017.
MARCONI PLC: Edward Carreiro Files Securities Case
--------------------------------------------------
Law Offices of Edward J. Carreiro, of Hatboro, PA, filed a class
action lawsuit against Marconi, PLC and its officers resulting from
violation of the federal and/or state securities laws for those
individuals who purchased the above named stock between April 11,
2001 to July 4, 2001. For more information, contact Edward J.
Carreiro, Esquire, of The Law Offices of Edward J. Carreiro, 41
Byberry Road, Hatboro, Pennsylvania 19040, via email at
carreirolaw@yahoo.com, or at 215-672-7600. Please indicate the
number of shares purchased.
MEAD-JOHNSON: Infant Formula Mislabeling Spawns Lawsuit in Chicago
------------------------------------------------------------------
A website recall by Johnson-Mead Corp has spawned a national class
action law suit in Chicago, IL, Cook County Circuit Court for money
damages for infants who have been fed baby formula Enfamil
Nutramigen manufactured by Mead-Johnson, Internet Wire reports. The
suit was filed late Tuesday, July 10, 2001.
Mislabeling of the formula, which is marketed for babies who have
allergic reactions to cow's milk, occurred in the Spanish
instructions. If the instructions are followed, this results in a
higher concentration of formula and may cause excessive vomiting,
diarrhea and results in dehydration in babies. The reaction to the
formula can also lead to death, seizures and other medical
conditions, the Wire reports.
The lawsuit alleges the formula overdose results in symptoms which
mimic the symptoms for which the milk-sensitive infants are being
fed the baby formula in the first place, giving parents and
pediatricians no reason to suspect the product. For further
information, contact Robert A. Holstein, Thomas A. Zimmerman, Jr.,
Angie Rozanski, or Erica Cleaves Toll free# (877) 660-7677,
Telephone# (312) 440-0020, Fax# (312) 440-4180, or Email address:
tzimmerman@shzhlaw.com.
MOVIE REVIEWS LITIGATION: Sony Reinstates Manning Marketing Execs
-----------------------------------------------------------------
Marketing executives Matthew Cramer, Sony's promotional director,
and Josh Goldstine, senior vice president of creative advertising,
have been reinstated after being suspended for 30 days without pay.
The executives were suspended after information leaked that film
critic David Manning was a fake and was simply manufactured to
praise studio releases.
Listed as a reviewer for the Ridgefield Press, a small Connecticut
weekly, The fake David Manning was listed as a reviewer for the
Connecticut weekly Ridgefield Press, and called A Knight's Tale's
star Heath Ledger as "this year's hottest new star". Manning also
labeled Rob Schneider's The Animal, "another winner". The made-up
reviewer had hyped two of Sony's 2000 releases, Hollow Man and
Vertical Limit, E!Online reports.
On June 7, Cramer and Goldstine were "formally reprimanded and
suspended" following an internal investigation by Sony Pictures
that showed they made up the bogus blurbs. Cramer had borrowed the
Manning name from an old college friend.
MP3.COM INC: Schiffrin & Barroway Files Securities Suit
-------------------------------------------------------
Schiffrin & Barroway, LLP announced today that it recently filed
lawsuits against MP3.com, Inc. (Nasdaq:MPPP) for violations of the
federal securities laws.
Buyers of the securities of MP3.com during the class period July
21, 1999 to May 16, 2001 may be a member of the class and may
request to become the lead plaintiff.
The complaint charges MP3 and certain of its officers and directors
with issuing a Registration Statement and Prospectus in connection
with MP3's initial public offering that contained materially false
and misleading formation and failed to disclose material
information. Specifically, the complaint alleges that the
Prospectus was false and misleading because it failed to disclose
(i) The Underwriter Defendants' agreement with certain
investors to provide them with significant amounts of restricted
MP3 shares in the IPO in exchange for exorbitant and undisclosed
commissions; and
(ii) the agreement between the Underwriter Defendants and
certain of their customers whereby the Underwriter Defendants would
allocate shares in the IPO to those customers in exchange for the
customers' agreement to purchase MP3 shares in the after-market at
pre-determined prices. Furthermore, the SEC is investigating
underwriting practices in connection with several other initial
public offerings, including the offerings of VA Linux Systems,
Inc., Ariba Inc. and United Parcel Service, Inc. The complaint was
filed in the U.S. District Court for the Northern District of New
York. The lead plaintiff motion must be filed no later than July
17, 2001.
For more information, contact the Shareholder Relations Manager of
Schiffrin & Barroway, LLP, Bala Cynwyd, 888 299-7706, (610) 667-
7706, fax number 610-667-7056, info@sbclasslaw.com.
ON SEMICONDUCTOR: Bernstein Liebhard Files Securities Suit in NY
----------------------------------------------------------------
A securities class action lawsuit was commenced on behalf all
persons who acquired ON Semiconductor Corporation (F/K/A SCG
Holding Corporation) (NASDAQ: ONNN - news) securities between April
27, 2000 and December 6, 2000. A copy of the complaint is available
from the Court or from Bernstein Liebhard & Lifshitz, LLP. The case
is pending in the United States District Court for the Southern
District of New York located at 500 Pearl Street, New York, New
York 10004. The following are named as defendants in the complaint:
* ON Semiconductor
* Steve Hanson
* Dario Sacomani
* Curtis J. Crawford
* Morgan Stanley & Co., Incorporated
* Lehman Brothers, Inc.
* FleetBoston Robertson Stephens, Inc., and
* Salomon Smith Barney, Inc.
The complaint charges defendants with violations of the Securities
Act of 1933 and the Securities Exchange Act of 1934 for issuing a
Registration Statement and Prospectus that contained materially
false and misleading information and failed to disclose material
information. The Prospectus was issued in connection with ON
Semiconductor's initial public offering of 30 million shares of
common stock at $16.00 per share that was completed on or about
April 27, 2000.
The complaint alleges that the Prospectus was false and misleading
because it failed to disclose
(i) the Underwriter Defendants' agreement with certain
investors to provide them with significant amounts of restricted ON
Semiconductor shares in the IPO in exchange for exorbitant and
undisclosed commissions; and
(ii) the agreement between the Underwriter Defendants and
certain of its customers whereby the Underwriter Defendants would
allocate shares in the IPO to those customers in exchange for the
customers' agreement to purchase ON Semiconductor shares in the
after-market at pre-determined prices.
The SEC is investigating underwriting practices in connection with
several other initial public offerings, including the offerings of
VA Linux Systems, Inc., Ariba Inc. and United Parcel Service, Inc.
Persons who purchased or otherwise acquired ON Semiconductor
securities during the Class Period and either lost money on the
transaction or still hold the securities may wish to request court
appointment as lead plaintiff no later than September 3, 2001.
For more information, contact Ms. Linda Flood, Director of
Shareholder Relations, at Bernstein Liebhard & Lifshitz, LLP, 10
East 40th Street, New York, New York 10016, (800) 217-1522 or 212-
779-1414 or by e-mail at ONNN@bernlieb.com, website at
www.bernlieb.com.
RHYTHMS NETCONNECTIONS: Bernstein Liebhard Files Suit in S.D. NY
----------------------------------------------------------------
A securities class action lawsuit was commenced on behalf all
persons who acquired Rhythms NetConnections, Inc. (NASDAQ: RTHM -
news) securities between April 6,, 1999 and July 5, 2001. A copy of
the complaint is available from the Court or from Bernstein
Liebhard & Lifshitz, LLP.
The case is pending in the United States District Court for the
Southern District of New York located at 500 Pearl Street, New
York, New York 10004. The following are named as defendants in the
complaint:
* Rhythms NetConnections
* Catherine M. Hapka
* Scott C. Chandler
* Kevin R. Compton
* Keith B. Geeslin
* Ken L. Harrison
* Susan Mayer
* William R. Stensrud
* John L. Walecka
* Edward J. Zander
* Merrill Lynch Pierce Fenner & Smith, Incorporated
* Salomon Smith Barney Inc.
* Hambrecht & Quist LLC, and
* Thomas Weisel Partners LLC.
The complaint charges defendants with violations of the Securities
Act of 1933 and the Securities Exchange Act of 1934 for issuing a
Registration Statement and Prospectus that contained materially
false and misleading information and failed to disclose material
information. The Prospectus was issued in connection with Rhythms
NetConnections's initial public offering of 9,375,000 shares of
common stock at $21.00 per share that was completed on or about
April 6, 1999.
The complaint alleges that the Prospectus was false and misleading
because it failed to disclose
(i) the Underwriter Defendants' agreement with certain
investors to provide them with significant amounts of restricted
Rhythms NetConnections shares in the IPO in exchange forexorbitant
and undisclosed commissions; and
(ii) the agreement between the Underwriter Defendants and
certain of its customers whereby the Underwriter Defendants would
allocate shares in the IPO to those customers in exchange for the
customers' agreement to purchase Rhythms NetConnections shares in
the after-market at pre-determined prices.
The SEC is investigating underwriting practices in connection with
several other initial public offerings, including the offerings of
VA Linux Systems, Inc., Ariba Inc. and United Parcel Service, Inc.
Persons who purchased or otherwise acquired Rhythms NetConnections
securities during the Class Period and either lost money on the
transaction or still hold the securities may wish to join in the
action to serve as lead plaintiff no later than September 4, 2001.
For more informatino, contact Ms. Linda Flood, Director of
Shareholder Relations, at Bernstein Liebhard & Lifshitz, LLP, 10
East 40th Street, New York, New York 10016, (800) 217-1522 or 212-
779-1414 or by e-mail at RTHM@bernlieb.com, website
www.bernlieb.com.
SIPEX CORPORATION: Edward Carreiro Files Securities Suit
--------------------------------------------------------
Law Offices of Edward J. Carreiro, of Hatboro, PA, filed a class
action lawsuit against Sipex Corp. (Nasdaq:SIPX) and its officers
resulting from violation of the federal and/or state securities
laws for those individuals who purchased the above named stock
between July 20, 2000 and January 11, 2001.
For more information, contact Edward J. Carreiro, Esquire, of The
Law Offices of Edward J. Carreiro, 41 Byberry Road, Hatboro,
Pennsylvania 19040, via email at carreirolaw@yahoo.com, or at 215-
672-7600. Please indicate the number of shares purchased.
SIPEX CORPORATION: Claims Lawsuits Are Without Merit
----------------------------------------------------
SIPEX Corporation (Nasdaq: SIPX - news) announced it has been named
as a defendant in purported securities class action litigation
filed in the United States District Court for the district of
Massachusetts on behalf of purchasers of the Company's common stock
during the period from July 20, 2000 to January 11, 2001. Certain
of the Company's officers are also named as defendants. The
litigation alleges, among other things, incorrect statements in the
Company's financial statements for the second and third quarters of
fiscal year 2000.
The Company believes the allegations are without merit and intends
to vigorously defend them.
SIPEX Corporation is a manufacturer of analog integrated circuits.
SIPEX serves the broad analog signal processing market with single,
dual and multi-protocol interface circuits, low power and high
voltage application specific circuits, electroluminescent drivers,
data converters and power management products. Applications for the
Company's products include telecommunications including personal
computers and peripherals, battery powered hand-held devices,
cellular telephones, test equipment factory automation, networking,
process controls and satellites.
For further information, contact Frank R. DiPietro, Executive Vice
President & CFO at SIPEX Corporation, 22 Linnell Circle, Billerica,
MA 01821, Telephone (978) 671-1909.
TELAXIS COMMUNICATIONS: Wolf Haldenstein Initiates Suit in S.D. NY
------------------------------------------------------------------
Wolf Haldenstein Adler Freeman & Herz LLP has commenced a class
action lawsuit in the United States District Court for the Southern
District of New York, on behalf of purchasers of Telaxis
Communications Corporation (NASDAQ: TLXS) securities between
February 1, 2000 and December 6, 2000, inclusive, against
defendants Telaxis, certain of its officers and directors, and its
underwriters.
The case name and index number are Paquette v. Telaxis
Communications Corp. et al, (01-CV-6274). A copy of the complaint
filed in this action is available from the Court, or can be viewed
on the Wolf Haldenstein Adler Freeman & Herz LLP website at
www.whafh.com.
The complaint alleges defendants violated the federal securities
laws by issuing and selling Telaxis common stock pursuant to the
February 1, 2000 IPO without disclosing to investors that some of
the underwriters in the offering, including the lead underwriters,
had solicited and received excessive and undisclosed commissions
from certain investors.
Specifically, the complaint alleges that in exchange for the
excessive commissions, defendants allocated Telaxis shares to
customers at the IPO price. To receive the allocations (i.e., the
ability to purchase shares) at the IPO price, the underwriters'
brokerage customers had to agree to purchase additional shares in
the aftermarket at progressively higher prices. The requirement
that customers make additional purchases at progressively higher
prices as the price of Telaxis stock rocketed upward (a practice
known on Wall Street as laddering) was intended to (and did) drive
Telaxis's share price up to artificially high levels. This
artificial price inflation enabled both the underwriters and their
customers to reap enormous profits by buying stock at the IPO price
and then selling it later for a profit at inflated aftermarket
prices.
Persons who purchased Telaxis securities during the class period
may request court appointment as lead plaintiff by August 13, 2001.
For more information, contact Wolf Haldenstein Adler Freeman & Herz
LLP at 270 Madison Avenue, New York, New York 10016. Telephone at
(800) 575-0735 (Fred Taylor Isquith, Esq., Gregory M. Nespole,
Esq., Gustavo Bruckner, Esq., Thomas Burt, Esq., Michael Miske, or
George Peters), via e-mail at classmember@whafh.com or visit our
website at http://www.whafh.comYour e-mail should refer to
Telaxis.
TICKETS.COM INC: Bernstein Liebhard Files Securities Suit
---------------------------------------------------------
A securities class action lawsuit was commenced on behalf all
persons who acquired Tickets.com, Inc. (NASDAQ: TIXX - news)
securities between November 3, 1999 and December 6, 2000. A copy of
the complaint is available from the Court or from Bernstein
Liebhard & Lifshitz, LLP.
The case is pending in the United States District Court for the
Southern District of New York located at 500 Pearl Street, New
York, New York 10004. The following are named as defendants in the
complaint:
* Tickets.com
* Ian Sym-Smith
* W. Thomas Gimple
* John M. Markovich
* Michael R. Rodriquez
* James A. Caccavo
* Christos M. Cotsakos
* William E. Ford
* Howard L. Morgan
* Irvin E. Richter
* Nicholas E. Sinacori
* Morgan Stanley & Co., Incorporated
* Credit Suisse First Boston Corporation
* SG Cowen Securities Corporation
* Morgan Stanley Dean Witter Online Inc.
* E*Offering Corp., and
* Wit Capital Corporation
The complaint charges defendants with violations of the Securities
Act of 1933 and the Securities Exchange Act of 1934 for issuing a
Registration Statement and Prospectus that contained materially
false and misleading information and failed to disclose material
information. The Prospectus was issued in connection with
Tickets.com's initial public offering of 6,700,000 shares of common
stock at $12.50 per share that was completed on or about November
3, 1999. The complaint alleges that the Prospectus was false and
misleading because it failed to disclose
(i) the Underwriter Defendants' agreement with certain
investors to provide them with significant amounts of restricted
Tickets.com shares in the IPO in exchange for exorbitant and
undisclosed commissions; and
(ii) the agreement between the Underwriter Defendants and
certain of its customers whereby the Underwriter Defendants would
allocate shares in the IPO to those customers in exchange for the
customers' agreement to purchase Tickets.com shares in the after-
market at pre-determined prices. The SEC is investigating
underwriting practices in connection with several other initial
public offerings, including the offerings of VA Linux Systems,
Inc., Ariba Inc. and United Parcel Service, Inc. Plaintiff seeks to
recover damages on behalf of all those who purchased or otherwise
acquired Tickets.com securities during the Class Period.
Persons who purchased or otherwise acquired Tickets.com securities
during the Class Period and either lost money on the transaction or
still hold the securities may wish to join in the action to serve
as lead plaintiff no later than September 4, 2001.
For more information about this action, contact Ms. Linda Flood,
Director of Shareholder Relations, at Bernstein Liebhard &
Lifshitz, LLP, 10 East 40th Street, New York, New York 10016, (800)
217-1522 or 212-779-1414 or by e-mail at TIXX@bernlieb.com, or
visit the firm's website at www.bernlieb.com.
TREX COMPANY: Bernard Gross Files Securities Complaint in VA
------------------------------------------------------------
A class action lawsuit was filed on July 11, 2001 in the Western
District of Virginia on behalf of purchasers of the securities of
Trex Company, Inc. (NYSE: TWP - news), between April 24, 2001
through June 18, 2001 inclusive. A copy of the complaint is
available from the Court or from Law Offices Bernard M. Gross, P.C.
The Complaint charges defendants with violations of Sections 10(b)
and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5
promulgated thereunder by issuing a series of material
misrepresentations to the market between, April 24, 2001 through
June 18, 2001 thereby artificially inflating the price of Trex
securities.
The Complaint alleges that throughout the Class Period, the Company
repeatedly issued press releases highlighting the Company's strong
sales revenue growth and earnings growth. These statements were
materially false and misleading because they failed to disclose
that
(1) the company had shipped to their customers product in
quantities far in excess of the actual demand which resulted in
inventory build-up at its customers; and
(2) the excess inventory at the customer level resulted in the
company not reasonably believing it could achieve $81 million in
first half revenues for 2001 . Finally, on June 18, 2001, the
company revealed that because of its excess inventories at the
customers, it had experienced substantially reduced sales in April
and May and that Trex expected to achieve only $66 to $68 million
in revenues for the first half of 2001. As a result of this
disclosure, Trex's stock price fell $7.98 to close at $18.50 on
June 19, with over 1.3 million shares traded.
Furthermore, during the class period, defendants Wittenberg and
Matheny sold 190,000 shares of Trex stock at prices that were
artificially inflated by the defendants' wrongdoing.
Plaintiff is represented by the Law Offices Bernard M. Gross, P.C.
Members of the class described above have until September 11, 2001
to participate in the case and request court appointment as one of
the lead plaintiffs for the Class. For more information, contact
Susan R. Gross, Esq. (susang@bernardmgross.com) or Deborah R.
Gross, Esq.) (debbie@bernardmgross.com) of the Law Offices of
Bernard M. Gross, P.C. Walnut Street, Suite 600 PA 19102, (toll
free) 866-561-3600, 215-561-3600, website at www.bernardmgross.com.
TYSON FOODS: Faruqi & Faruqi File Suit for IBP Sellers
------------------------------------------------------
A class action lawsuit was commenced in the United States District
Court for the District of Delaware on behalf of all sellers of IBP,
Inc. (NYSE:IBP - news) common stock between March 29, 2001 and June
15, 2001, inclusive. A copy of the complaint filed in this action
can be viewed on the law firm Faruqi & Faruqi, LLP 's Website at
www.faruqilaw.com.
The complaint charges Tyson Foods, Inc. with violations of Section
10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule
10b-5 promulgated thereunder. Specifically, the complaint alleges
that on March 29, 2001, Tyson announced it was terminating the
proposed merger between Tyson and IBP. Tyson claims it was
inappropriately induced to enter into the Merger Agreement by
relying upon misleading information furnished by IBP concerning an
SEC comment letter and the financial results at an IBP subsidiary.
Immediately following Tyson's announcement, the price of IBP's
common stock plummeted in after-hours trading from $22.79 to $14.89
per share, a 35% decline. On June 15, 2001, however, in an action
brought by IBP shareholders, In re IBP, Inc. Shareholders
Litigation, Consolidated Civil Action No. 18373 (Del. Ch., June 15,
2001), the Court concluded that Tyson's decision to withdraw from
the merger had nothing to do with the SEC comment letter or the
problems at IBP's subsidiary.
Plaintiff seeks to recover damages on behalf of himself and all
other individual and institutional investors who sold IBP stock
between March 29, 2001 and June 15, 2001, excluding defendants and
their affiliates. Persons who sold IBP securities during the
Class Period may, not later than August 21, 2001, move the court to
serve as lead plaintiff of the class. For more information,
contact Anthony Vozzolo, Esq. or Shane Rowley, Esq. of Faruqi &
Faruqi, LLP, 320 East 39th Street, New York, NY 10016, Telephone:
(877) 247-4292 or (212) 983-9330, e-mail Avozz@faruqilaw.com,
Srowley@faruqilaw.com, www.faruqilaw.com.
U.S. WIRELESS: Milberg Weiss Files Suit in N.D. California
----------------------------------------------------------
Milberg Weiss (http://www.milberg.com/u.s.wireless/)filed a class
action has been commenced in the United States District Court for
the Northern District of California on behalf of purchasers of U.S.
Wireless Corporation (NASDAQ:USWC; USWCE; CUSIP 90339C10) publicly
traded securities during the period between June 29, 1999 and May
25, 2001.
Investors who wish to serve as lead plaintiff must move the Court
no later than 60 days from today.
The complaint charges U.S. Wireless and its former Chairman and CEO
with violations of the Securities Exchange Act of 1934. The
Company, through a national network of wireless location systems,
enables wireless carriers to offer location-enhanced services,
including 911 caller pinpointing, localized news and traffic
updates, vehicle and asset tracking, and carrier network management
services. The complaint alleges that during the Class Period, in
order to conceal their self dealing transactions, defendants caused
the Company to falsely report its results for fiscal 2000 through
improper characterization of the benefit and the beneficiaries of
the issuance of shares of the Company's stock. As a result of this
mischaracterization, the Company's net loss attributable to common
shareholders was understated by $6.2 million, or 35%. Ultimately,
U.S. Wireless revealed that its results for fiscal 2000 were in
error and would be restated to record the share issuances at fair
market value and record a loss of $5.3 million for the shares and
$0.9 million for certain tax effects. Absent defendants' improper
accounting, the Company would have reported much less favorable
fiscal 2000 earnings.
On May 29, 2001, Nasdaq issued an unusual press release entitled
"Nasdaq Halts Trading of U.S. Wireless Corporation and Requests
Additional Information from Company." On this news, U.S. Wireless
shares were halted from trading at $2.91, 88% lower than the Class
Period high of $24.50.
Plaintiff seeks to recover damages on behalf of all purchasers of
U.S. Wireless publicly traded securities during the Class Period.
The plaintiff is represented by Milberg Weiss Bershad Hynes &
Lerach LLP, who has expertise in prosecuting investor class actions
and extensive experience in actions involving financial fraud.
For more information about this action, contact plaintiff's
counsel, William Lerach or Darren Robbins of Milberg Weiss at
800/449-4900 or via e-mail at wsl@milberg.com.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Class Action Reporter is a daily newsletter, co-published by
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Group, Inc., Washington, D.C. Enid Sterling, Larri-Nil Veloso and
Lyndsey Resnick, Editors.
Copyright 2001. All rights reserved. ISSN 1525-2272.
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