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Technology Stocks : CMGI What is the latest news on this stock? -- Ignore unavailable to you. Want to Upgrade?

To: Paulh who wrote (17328)	3/18/2000 1:02:00 AM
From: bundashus	Read Replies (1) \| Respond to of 19700

Maybe it is too late to think about this law suite, but I don't understand why somebody is suing CMGI. Engage is up big time since the announcement of the buy out (Engage share holders should be happy). Flycast and Adsmart are still getting 32 million shares of Engage which now are worth alot more then when announced. Just who is getting hurt here and why would some be suing? Sounds like to me everybody is a big winner in this deal. 01:07 PM ET 03/17/00 CMGI, Engage sued over Flycast, Adsmart sale WASHINGTON, March 17 (Reuters) - The Internet investment firm CMGI Inc. said it and Engage Technologies Inc. have been sued over the sale of Flycast Communications Corp. and Adsmart Corp. to Engage. CMGI said the shareholder suit accused the two companies and some of their executives of violating their fiduciary duties of loyalty and good faith. The suit was filed in the Court of Chancery of the State of Delaware on Thursday. "CMGI believes that the complaint is without merit and intends to contest the claims vigorously," CMGI said in its quarterly report filed with the Securities and Exchange Commission late Thursday. Engage, which tracks online customer tastes, agreed on Jan. 20 to acquire the Internet ad-buying network Adsmart and the advertising space seller Flycast in exchange for 32 million Engage shares on a pre-split basis. At the time of deal, it was valued at roughly $2.6 billion when Engage's stock was about $77 per share. Now, the deal is worth an estimated $4.2 billion as Engage's shares have risen to more than $131 per share. The suit specifically names CMGI Chief Executive David Wetherall, chief financial officer Andrew Hadjducky, Engage CEO and President Paul Schaut, among others. Andover, Mass.-based CMGI is already the majority owner of Engage and the transaction is expected to be completed in either April or May. Shares of CMGI were down 1-5/16 to 122-7/8 on Nasdaq while Engage shares were up 7-1/8 to 133-1/8. ((--Jeremy Pelofsky, Reuters SEC Desk, 202-898-8399))