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Microcap & Penny Stocks : HITSGALORE.COM (HITT) -- Ignore unavailable to you. Want to Upgrade?

To: Tom Terf who wrote (5097)	2/22/2000 4:42:00 PM
From: Jeffrey D	Read Replies (2) \| Respond to of 7056

Hitsgalore.com Wins Final Dismissal of Federal Class ActionLawsuit With Prejudice RANCHO CUCAMONGA, Calif., Feb. 22 /PRNewswire/ -- Hitsgalore.com, Inc. (OTC Bulletin Board: HITT) announced that on February 22, 2000, District Judge Manuel L. Real of the United States District Court for the Central District of California (the "Court") granted the Company's motion to dismiss the Second Consolidated Amended Class Action Complaint filed against Hitsgalore.com in the action entitled In re HITSGALORE.COM, INC. SECURITIES CLASS ACTION, Case No. 99-CV-5060. "On December 20, 1999, Judge Real granted Hitsgalore.com's motion to dismiss the First Consolidated Amended Class Action Complaint, but gave plaintiffs 20 days within which to file an amended pleading," stated Daniel J. Becka of Schoeppl & Burke, P.A., the Company's attorneys. "This time, the Court dismissed the action with prejudice, meaning that the Court made a final adjudication in favor of the defendants on the merits of the plaintiffs' claims that the Company, Steve Bradford and Dorian Reed violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder," explained Mr. Becka. Mr. Becka added: "What the Court essentially did was to say that, assuming all of the facts pleaded in plaintiffs complaint to be true, plaintiffs still failed to state a cause of action for securities fraud against Hitsgalore.com and Messrs. Reed and Bradford." The first of three lawsuits that were eventually consolidated into the action described above, was filed only two days after the issuance of a Bloomberg article which falsely implied that the Company fraudulently failed to disclose in a February 1999 filing with the Securities and Exchange Commission the existence of an FTC complaint brought against Dorian Reed and others relating to Internet Business Broadcasting, Inc., an online advertising company that closed in 1997 with which Mr. Reed was associated. The Company's stock price decreased dramatically after issuance of that story. The Second Amended Complaint alleged that the defendants engaged in a "fraudulent scheme" to "artificially inflate" the price of the Company's stock by making fraudulent misrepresentations and omissions of material fact during the period February 17, 1999 through August 24, 1999. "We have denied all along that the Company ever made any fraudulent statements in its SEC filings, press releases or anywhere else," said Mr. Reed. "The final dismissal of the class action lawsuit with prejudice affirms this," Mr. Reed said. "The plaintiffs in the dismissed class action lawsuit now have three options," Daniel Becka explained. "They can either: (1) request that the Court reconsider its decision dismissing the complaint; (2) appeal the decision to the United States Court of Appeals for the Ninth Circuit; or (3) concede defeat," Dan Becka explained. "If I were them, I'd choose the third option," said Mr. Becka. "This is precisely the type of meritless lawsuit Congress sought to prohibit when it enacted the Private Securities Litigation Reform Act of 1995." SOURCE Hitsgalore.com, Inc.