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Pastimes : Investment Chat Board Lawsuits -- Ignore unavailable to you. Want to Upgrade?

To: StockDung who wrote (232)	5/3/2000 11:03:00 AM
From: Jeffrey S. Mitchell	Read Replies (6) \| Respond to of 12465

Re: Disclaimers no protection against fraud ===== April 27, 2000 E-Mail Touters Growing More Sophisticated In Securities Law Disclaimers E-mail stock touters are growing more sophisticated in the securities law disclosures/disclaimers that they append to their e-mails touting small companies' stocks. On April 27, an e-mail made the rounds touting shares in a tiny company that sells children's toys, among other things, via a Web site. There was nothing newsworthy in that fact. But, interestingly, the e-mail -- issued by something calling itself "Inside the OTC" -- closed with the following: "Disclosure Statement This material is being provided by Web Marketing Network, an electronic broadcaster hereafter referred to as the company, and has been paid by the issuer for providing the information contained in this report. The company has received a consideration of 22,000 Free Trading Shares at the Discounted Rate of $.30US per share by Novak Capital, on behalf of [the company being touted], hereafter referred to as the client, as payment for publication of the information contained in this report. Because the company is paid for its services, there is an inherent conflict of interest in the company statements and opinions and such statements and opinions cannot be considered independent. The information contained in this publication is for informational purposes only, and not to be construed as an offer to sell or solicitation of an offer to buy any security. The company makes no representation or warranty relating to the validity of the facts presented nor does the company represent or warrant that all material facts necessary to make an investment decision are presented above. All statements of opinions are those of the company. The company relies exclusively on information gathered from the client, or public filings on featured client, as well as, in certain circumstances, interviews conducted by the company of management of the client. Investors should not rely solely on the information contained in this publication. Rather, investors should use the information in this publication as a starting point for conducting additional research on the featured companies in order to allow the investor to form his or her own opinion regarding the featured companies. Factual statements contained in this publication are made as of the date stated and they are subject to change without notice. The company is not a registered investment adviser, broker or dealer. Investment in the clients reviewed is speculative and extremely high-risk and may result in the loss of some or all of any investment made in the client. Actual projections in future financial results have been provided solely by the client. No assurances are given that the client will achieve said projections. This publication contains forward-looking statements that are subject to risk and uncertainties that could cause results to differ materially from those set forth in the forward-looking statements. These forward-looking statements represent the judgment of either the company and/or the client as of the date of this publication. The Company disclaims any intent or obligation to update these forward-looking statements. Pheww! Still want to buy a few thousand shares? In any event, the authors of such disclaimers should take heed of the SEC's new Internet Release. That interpretive guidance states in a slightly different context that "[w]e do not view a disclaimer alone as sufficient to insulate an issuer from responsibility for information that it makes available to investors . . . To conclude otherwise would permit unscrupulous issuers to make false or misleading statements available to investors without fear of liability as long as the information is accompanied by a disclaimer." SEC Interpretive Release: Use of Electronic Media, Securities Act Release No. 33-7856, Exchange Act Release No. 34-42728, Investment Company Act Release No. IC-24426 (April 28, 2000), at 24, n.61. cybersecuritieslaw.com ===== - Jeff