NEW YORK, May 19, 2001 (PRIMEZONE) -- Notice is hereby given that a class action lawsuit was commenced in the United States District Court for the Western District of Pennsylvania on behalf of all purchasers of FreeMarkets, Inc. ("FreeMarkets" or the "Company") (Nasdaq:FMKT) common stock between July 24, 2000 through April 23, 2001, inclusive (the "Class Period").
The complaint charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. The complaint alleges, among other things, that the defendants issued a series of false and misleading press releases concerning FreeMarkets' financial condition and business prospects. Specifically, the complaint alleges that FreeMarkets failed to properly account for a warrant that it had provided to one of its largest customers, Visteon Corporation ("Visteon") during the Class Period. Moreover, the Company is charged with improperly accounting for its financial results for the second, third and fourth quarters and the year of fiscal 2000, thereby inflating the Company's actual revenues and earnings. As a result, the price of the Company's common stock was artificially inflated throughout the Class Period, allowing defendants to collectively sell millions of dollars worth of shares in personally held FreeMarkets' common stock. However, on April 23, 2001, FreeMarkets revealed that the Securities and Exchange Commission staff had informed the company that its payments from Visteon should not be classified as revenue, but as money paid for the warrant. As a result, absent an appeal to the full SEC, the company said it would amend its financial statements to eliminate all the revenue it had received from Visteon during the Class Period. In response, FreeMarkets' stock price fell from a close of $10.29 per share on April 23, 2001 to $9.30 on April 24, 2001, significantly down from its class period high of $92.063 on September 5, 2001.
Plaintiff seeks to recover damages on behalf of himself and all other individual and institutional investors who purchased or otherwise acquired FreeMarkets securities between July 24, 2000 through April 23, 2001, excluding defendants and their affiliates. Plaintiff is represented by Faruqi & Faruqi, LLP, a law firm with extensive experience in prosecuting class actions, and significant expertise in actions involving corporate fraud.
If you purchased FreeMarkets securities during the Class Period, you may, not later than June 26, 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. If you wish to discuss this action, or have any questions concerning this notice or your rights or interests, please contact:
ANTHONY VOZZOLO, ESQ.
FARUQI & FARUQI, LLP
320 East 39th Street
New York, NY 10016
Telephone: (877) 247-4292 or (212) 983-9330
e-mail (FaruqiLawAV@aol.com)
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.