Here is for new investors the original lawsuit BNEZ/AOL.
Will AOL go all the way and challenge BNEZ in Court?
We will know soon.
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America Online gets sued
Software company claims AOL sank its stock by misquoting its price
From Correspondent Steve Young
March 12, 1997: 10:48 a.m. ET
Tartikoff heads AOL area - March 10, 1997
AOL: Good news, bad news - Feb. 6, 1997
America Online
Ben Ezra Weinstein & Co.
NEW YORK (CNNfn) - America Online is being sued for millions of dollars by a New Mexico software company that says its investors were thrown into a panic because AOL misquoted its stock price.
The online service incorrectly posted that the $1.70 over-the-counter bulletin board stock of Ben Ezra Weinstein & Co. as trading at 17 cents.
AOL said the faulty data came from S&P Comstock Inc. But panicky investors traded down the price of the stock about 20 percent.
AOL said the problem has been fixed.
Jack Ben Ezra, CEO of the misquoted company, felt little relief, however. "That's a little like saying the Titanic hit an iceberg yesterday and today the ocean is just fine," he said.
An unknown number of other over-the-counter stocks were misquoted by the service. AOL and S&P Comstock said they first learned of the problem March 4 and took corrective action within three days.
But a phone message (190K WAV) or (190K AIFF) left March 6 for Ben Ezra Weinstein & Co. shows AOL knew about the problem for weeks and had only posted a hard to find notice in the last few days.
"A few weeks ago we got some reports from a few members that there was an incorrect price on a stock that was off by a factor of exactly one-tenth," the message said. "Instead of showing the stock at $10, it would show up as $1, or instead of $12 it would be $1.20."
Andrew Ross, of Loeb & Loeb said that members who sold stock at a loss have little redress.
"They certainly may have relied on the information but AOL's contract with its members does say it is not responsible for the content and members use it at their own risk."
On the other hand, some lawyers say previous suits against online companies involved information put out by accident, not knowingly over a period of time as seems to be the case with AOL.
AOL said late Tuesday it has not seen the complaint and was not prepared to comment.
Ben Ezra Weinstein blames
America Online, which blames
S&P Comstock.
Jack Ben Ezra
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