Nice find levy...
Did you also see the article's second page?
I periodically give Berman's firm a call, and have talked with one of the key members of the team suing INSP, MER, et al...on behalf of the shareholders. One guy I chatted with is their master at "following the money," and analyzing the truth hidden in financial statements. At this point they're all pretty much waiting for Judge Thomas Zilly to make a ruling as to whether the lawsuit can proceed. It may take years. Before this all plays out, I won't be surprised at all if "off-shore" bank accounts end up playing a roll, when it comes to "Show me where the money went" type questions. But that's just a complete speculation on my part. ;)
Page One:
findarticles.com
Some excerpts from Page Two:
findarticles.com
"The Internet bubble was pumped full of air, and eventually burst, as the result of illicit collaborations such as the one between InfoSpace and Merrill Lynch," Berman said.
"The temptation of releasing false reports was too great for both companies," he continued. "InfoSpace benefited from higher stock prices, and Merrill Lynch received lucrative banking fees, all at a tremendous cost to the investor."
Illuminating the relationship between investment bankers and research analysts, the complaint also notes that Merrill Lynch took surveys on the amount of ancillary business analyst coverage brought to the firm. In one such report, Blodget noted that his group had been involved in 52 investment-banking transactions during the fall of 2000 and the completed transactions had earned $115 million for the firm, the suit states.
The suit also makes several claims against InfoSpace, stating that during the class period of January 26, 2000 to January 30, 2001, InfoSpace released several strong statements about the performance of the company during investor conference calls and one-on-one calls with analysts. InfoSpace touted the company's high-flying performance throughout the period, claiming record operating results for the year, and revenue growth of more than 250 percent, according to the suit.
However, following the surprise replacement of InfoSpace's senior management team earlier this year, InfoSpace disclosed that revenues would actually sink into the red for the 2001 fiscal year, and the company would post a serious loss for the year, the suit states.
The lawsuit seeks compensatory damages for the money lost by stockholders. |
