E*TRADE IPO ALERT THREAD Message Board

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Technology Stocks : E*TRADE IPO ALERT THREAD

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To: Richard E. Warren who wrote (283)	4/16/1999 11:08:00 AM
From: Deeber	Read Replies (4) of 15145

E-Trade sued again: Los Angeles, April 15 (Bloomberg) -- ETrade Group Inc., the No. 3 online brokerage, has been sued by an investor for allegedly failing to alert its customers to initial public offerings. Palo Alto-based ETrade, which served nearly 700,000 customers last year, allegedly violated California law by running ads that convinced some traders they would obtain access to IPOs by opening an ETrade account. In a suit filed as a class-action Wednesday in Los Angeles County Superior Court, investor Matthew Rosenberg claims that even if an ETrade customer indicates an interest in a new IPO through an on-line bulletin board, the offering is either unavailable or not available in any meaningful amount. ''The company's success has been fueled, in part, by advertising aimed at convincing potential customers that if they open accounts with ETrade they will have access to Initial Public Offerings,'' Rosenberg said in the suit. The suit seeks restitution from ETrade and a court order prohibiting the company from further unlawful conduct. E*Trade spokeswoman Cindy McCaffrey could not immediately be reached for comment. Shares of the company fell 11 7/16 to 101 7/16. quote.bloomberg.com.

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