10/18/01 - [GENI] Shareholder Class Action Filed Against GenesisIntermedia, Inc. By The Law Firm of Schiffrin & Barroway, LLP
SHAREHOLDER CLASS ACTION FILED AGAINST GENESISINTERMEDIA, INC. BY THE LAW FIRM OF SCHIFFRIN & BARROWAY, LLP
Bala Cynwyd, PA - October 19, 2001 -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Central District of California on behalf of all purchasers of the common stock of GenesisIntermedia, Inc. ("GenesisIntermedia") (Nasdaq: GENI) from December 21, 1999 through September 25, 2001, inclusive (the "Class Period").
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@sbclasslaw.com.
The complaint charges GenesisIntermedia and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. Specifically, the complaint alleges that in December 1999, defendants plotted and unleashed their scheme to inflate the price of GenesisIntermedia shares and gave shares worth more than $3 million to a financial commentator who helped send the stock soaring after he agreed to issue allegedly false, positive recommendations for it on CNN, CNBC and Bloomberg Television. However, the complaint alleges defendants concealed the payment of 216,000 shares to the commentator, Courtney Smith, in order to induce the purchase of GenesisIntermedia shares and raise tens of millions of dollars via multiple private securities offerings. As a result of defendants' false statements, GenesisIntermedia's stock price traded at inflated levels during the Class Period, increasing to as high as $25 in June 2001. Then after the close of the market on Sept. 25, 2001, GenesisIntermedia's shares were halted pending the resolution of an investigation. GenesisIntermedia shares remain halted and are in essence, worthless. However, just hours before the announcement of the investigation and "halt," defendant El-Batrawi sold over $1.7 million dollars worth of his own shares.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, LLP, who has significant experience and expertise prosecuting class actions on behalf of investors and shareholders. For more information on Schiffrin & Barroway, or to sign-up to participate in this action online, please visit www.sbclasslaw.com.
If you are a member of the class described above, you may, not later than December 17, 2001, move the Court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements.
CONTACT: Schiffrin & Barroway, LLP
Marc A. Topaz, Esq.
Stuart L. Berman, Esq.
Three Bala Plaza East, Suite 400, Bala Cynwyd, PA 19004
1-888-299-7706 (toll free) or 1-610-667-7706
Or by e-mail at info@sbclasslaw.com
CONTACT: Schiffrin & Barroway, LLP
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