No. 5
Thursday January 13, 9:31 am Eastern Time
Company Press Release
Finkelstein & Krinsk Charge FreeMarkets,
Inc. With Harming Institutional and Other
Investors
SAN DIEGO--(BUSINESS WIRE)--Jan. 13, 2000--FreeMarkets Inc. (NASDAQ:FMKT - news) is accused
in a class action lawsuit filed by Finkelstein & Krinsk of violating the federal securities laws.
According to the Complaint, between December 10, 1999 and January 4, 2000 (the ''Class Period''),
FreeMarkets saw its stock price soar from its Initial Public Offering (''IPO'') price of $48 per share to $350 per
share as FreeMarkets misrepresented the true status of its relationship with General Motors, concealing the fact
that General Motors, one of FreeMarkets' largest customers, had signed an agreement with Commerce One to
create an Internet auction site which would result in the total evaporation of all of FreeMarkets' business from
General Motors.
The Complaint further alleges that the defendants knowingly concealed the fact that they were informed prior to
the IPO that General Motors had entered into a contractual relationship with Commerce One which would result
in the termination of its contract with General Motors in the first quarter of 2000 and provided for General
Motors to take a 19 percent ownership stake in Commerce One.
These false statements and omissions allowed FreeMarkets to go public and raise $160 million, three times the
amount it planned on raising, and caused the stock to trade in the $300-$350 range during the Class Period.
Finkelstein & Krinsk, the prominent San Diego law firm specializing in class action recoveries for institutional and
other substantial investors has been retained by FreeMarkets shareholders to recover losses for the Class Period.
The Complaint particularizes plaintiff's allegations of how the Company's management violated federal securities
laws and specifies the Company's false statements and omitted material facts. The Complaint has been filed in
United States District Court for the Western District of Pennsylvania and represents a class comprised of all
individual and institutional investors for the pertinent time period.
Finkelstein & Krinsk has extensive experience in prosecuting stockholder litigation and investor class actions and
is recognized as a leader in the field of shareholder recovery of stock losses. If you purchased or acquired a
significant amount of FreeMarkets stock during the Class Period, you can join in the action on favorable terms
without cost or expense to you by contacting Finkelstein & Krinsk.
Members of the Class who wish to actively participate must act by not later than sixty days from January 5,
2000.
For any inquiries or to discuss this lawsuit and alternatives, contact: Jeffrey R. Krinsk at Finkelstein & Krinsk, the
Koll Center, 501 West Broadway, Suite 1250, San Diego, CA 92101 by calling toll free 877/493-5366 or
E-Mail - fk@class-action-law.com. Or fax 619/238-5425.
Contact:
Finkelstein & Krinsk
Jeffrey R. Krinsk, Esq.,
toll free - 877/493-5366 or 619/238-1333 |
