A 2nd Class-Action lawsuit filed against INSP today:
Sy, is this called "piling on." All I know is that the Seattle attorney, Steve Berman, of the law firm Hagens-Berman filing this second "compaint" against INSP today, is considered by some to be one of the most outstanding attorneys in the entire country, and a "class action" specialist. I believe he was voted something to that effect sometime during the last few years...winning some incredible awards for his clients.
biz.yahoo.com
Tuesday June 19, 5:16 pm Eastern Time
Hagens Berman Announces Class Action Lawsuit Against InfoSpace, Inc.
SEATTLE--(BUSINESS WIRE)--June 19, 2001--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. ("InfoSpace") common stock during the period from January 26, 2000 through January 30, 2001 (the "Class Period").
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, contrary to 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, InfoSpace would report no revenue growth or EPS for FY 2001, but rather would report 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.
The plaintiff is represented by Hagens Berman LLP, which has concentrated its practice in the field of class action and multi-plaintiff litigation, representing plaintiffs in numerous securities and investment fraud actions throughout the country. Hagens Berman has been appointed lead or co-lead counsel on behalf of defrauded investors in numerous complex financial cases, and has been responsible for many large recoveries.
If you are a member of the Class described above, you may, no later than 60 days from today, move the Court to serve as lead plaintiff of the Class, if you so choose. In order to serve as 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 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.
Contact:
Hagens Berman LLP
Steve Berman or Karl Barth, 206/623-7292 or 888/381-2889
Karl@Hagens-Berman.com |
