No. 9
Friday January 7, 6:25 pm Eastern Time
Company Press Release
SOURCE: Law Office of Alfred G. Yates Jr
Yates Law Office Files Class Action Lawsuit
on Behalf Of FreeMarkets, Inc. Shareholders
PITTSBURGH, Jan. 7 /PRNewswire/ -- The following is an announcement by the Law Office of Attorney
Alfred G. Yates Jr:
Attention: FreeMarkets, Inc. Shareholders (Nasdaq: FMKT - news)
YOU ARE HEREBY NOTIFIED A class action lawsuit was filed in the United States District Court for the
Western District of Pennsylvania on behalf of all persons who purchased or otherwise acquired common stock
(collectively the ''common stock'') of FreeMarkets, Inc. (''FreeMarkets'' or the ''Company'') (Nasdaq: FMKT
- news) between December 10, 1999 and January 4, 2000, inclusive (the ''Class Period'').
The complaint charges FreeMarkets and certain of its officers and directors with violations of the Securities
Exchange Act of 1934. The complaint alleges that during 12/10/99 through 1/4/00, 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
Individual Defendants knew that disclosure of this Commerce One agreement with General Motors in its
Prospectus/Registration Statement would devastate FreeMarkets' chances of going public which allowed
FreeMarkets to raise $160 million in its 12/10/99 IPO. FreeMarkets' top executives were determined to conceal
the news of the Commerce One/General Motors Agreement until after FreeMarkets had gone public. In fact, the
complaint 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% ownership stake in Commerce One. These false statements/omissions in FreeMarkets'
Prospectus/Registration Statement were designed to and did allow FreeMarkets to go public and raise $160
million, which was triple the amount it planned on raising just weeks before, and caused the stock to trade in the
$300-$350 range during the Class Period.
As a result of the defendants' false statements/omissions, FreeMarkets' stock price traded at inflated levels during
the Class Period, increasing to as high as $350 on 1/4/00 and ultimately plummeting more than $70 per share on
1/4/00 to $278-1/2 per share.
Plaintiffs are represented by the Law Office of Alfred G. Yates Jr, a law firm with extensive experience in
prosecuting class actions.
This class action lawsuit is available to all individual and institutional investors who purchased FreeMarkets
common stock between December 10, 1999 and January 4, 2000, inclusive (the ''Class Period''). If you are a
member of the class, you may, not later than sixty days from January 5, 2000, move the court to serve as a lead
plaintiff of the class, if you so choose. In order to serve as a lead plaintiff, however, you must meet certain legal
requirements.
If you wish to discuss this action, or have any questions concerning this
notice or your rights or interests, please contact:
Alfred G. Yates Jr, Esq., 519 Allegheny Building, 429 Forbes Avenue, Pittsburgh, Pennsylvania 15219,
TELEPHONE toll free at 800-391-5164, or 412-391-5164, or via e-mail at yateslaw@aol.com, or fax at
412-471-1033.
SOURCE: Law Office of Alfred G. Yates Jr |
