Monday June 4, 7:00 pm Eastern Time
Press Release
SOURCE: Faruqi & Faruqi LLP
Faruqi & Faruqi, LLP Announces Filing of Class Action Lawsuit Against InterTrust Technologies Corporation -- ITRU
NEW YORK, June 4, 2001 (PRIMEZONE) -- Notice is hereby given that a class action lawsuit was commenced in the United States District Court for the Southern District of New York on behalf of all purchasers of InterTrust Technologies Corporation (``InterTrust'' or the ``Company'') (Nasdaq:ITRU - news) securities between October 26, 1999 and May 16, 2001, inclusive (the ``Class Period'').
The complaint charges that defendants violated 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 thereunder. Among other things, plaintiff claims that InterTrust's offering documents filed in connection with the Company's initial public offering (the ``IPO'') failed to disclose that certain underwriters in the offering had solicited and received additional, excessive and undisclosed commissions from certain investors in exchange for which, it allocated to those investors substantial blocks of InterTrust shares issued in connection with the IPO. However, to receive the allocations (i.e., the ability to purchase shares) at the $18.00 IPO price, the defendant underwriters' brokerage customers had to agree to purchase additional shares in the after-market at pre-determined prices. Such tie-in arrangements were designed to and did maintain and/or artificially inflate the market price for InterTrust shares. Moreover, as alleged in the complaint, the SEC and U.S. Attorneys' Office are investigating underwriting practices in connection with several other initial public offerings.
Plaintiff seeks to recover damages on behalf of himself and all (cont)
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