Class Action Against Henry Blodget and Merrill Lynch Relating to 24/7 Real Media, Inc. -- 10:27 AM EDT
NEW YORK, May 16, 2002 (BUSINESS WIRE) -- Notice is hereby given that a class action lawsuit was filed on May 16, 2002 in the United States District Court for the Southern District of New York, on behalf of purchasers of the common stock of 24/7 Real Media, Inc. ("24/7" or the "Company") (NASDAQ:TFSM) between February 18, 2000 and November 9, 2000, inclusive (the "Class Period") against defendants Merrill Lynch & Co., Inc. ("Merrill Lynch") and its former star Internet research analyst, Henry M. Blodget ("Blodget"), who are charged with issuing misleading analyst reports about 24/7.
The complaint alleges that Merrill Lynch and Blodget participated in a scheme to manipulate the market price of 24/7 common stock. The scheme was perpetrated by defendants through the issuance of inflated ratings and biased research reports for 24/7 common stock. Defendants' scheme with regard to 24/7 common stock was part of a larger scheme whereby Merrill Lynch research analysts in the internet group, under pressure from Merrill Lynch's investment bankers, would initiate, continue and/or manipulate research coverage to maintain and attract investment banking clients.
These practices came to light on April 8, 2002, when after a 10-month investigation, the New York state Attorney General concluded that since late 1999, internet research analysts at Merrill Lynch published ratings for internet stocks that were misleading because: (1) the ratings in many cases did not reflect the analysts' true opinions of the companies; (2) as a matter of undisclosed, internal policy, no "reduce" or "sell" recommendations were issued, thereby converting a published five category rating system into a three category system; and (3) Merrill Lynch failed to disclose to the public that Merrill Lynch's ratings were tarnished by research analysts who were acting as quasi-investment bankers rather than as independent and objective research reports on those companies.
If you purchased 24/7 common stock between February 18, 2000 and November 9, 2000, inclusive, you may, no later than 60 days from April 26, 2002, request the Court appoint you as lead plaintiff.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Stull, Stull & Brody, or other counsel of your choice, to serve as your counsel in this action.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Tzivia Brody, Esq. at Stull, Stull & Brody by calling toll-free 1-800-337-4983, or by e-mail at SSBNY@aol.com, or by fax at 212/490-2022, or by writing to Stull, Stull & Brody, 6 East 45th Street, New York, NY 10017.
CONTACT: Stull, Stull & Brody
Tzivia Brody, Esq., 1-800-337-4983 |
