Re: 8/22/00 - [FDHG] Fidelity Holdings Says Securities Class Action Lawsuit Without Merit
Fidelity Holdings Says Securities Class Action Lawsuit Without Merit
22 August 2000
Company Will Vigorously Defend Action
KEW GARDENS, N.Y. - Fidelity Holdings, Inc. (Nasdaq NM: FDHG) announced today that a class action under the federal securities laws has been commenced against the Company and certain of its present and former officers and directors.
The action is brought on behalf of a class consisting of all persons who purchased Fidelity common stock in the open market between November 15, 1999 and April 12, 2000 and have suffered damages thereby.
The Company believes that the allegations in the complaint are wholly without merit and intends to vigorously defend against the action. The Company further believes that this action is an outgrowth of the decline in valuations of certain technology sectors since April of this year and various false and defamatory messages concerning the Company that have appeared on Internet message boards during the past several months.
Fidelity has been contacted by numerous shareholders who have expressed concern over misinformation that has been disseminated in the marketplace about the Company, particularly the insulting, inaccurate and often profane missives written on Internet message boards. Fidelity takes the concerns of its shareholders seriously and is working diligently to address this issue, and is considering all avenues, including legal action, to combat this abuse. The Company appreciates the strong support of its shareholders and will continue to work in their best interests.
Fidelity Holdings is a diversified holding company that utilizes information and technology to target industries experiencing consolidation and/or deregulation. The Company currently operates two divisions -- Automotive and Technology. The Automotive Division operates through Major Automotive Group, a leading consolidator of automotive dealerships in the New York Metropolitan Area and ranked number one nationwide in used car sales dollars as a percentage of overall sales. The Technology Division operates primarily through Computer Business Sciences, its IG2, Inc. subsidiary, its Info Systems, Inc. subsidiary and its CarsTV.com, Inc. subsidiary.
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