NEW YORK, May 22, 2001 (PRIMEZONE) -- Notice is hereby given that a class action lawsuit was commenced in the United States District Court for the Southern District of New York on behalf of all purchasers of Multex.com Inc., ("Multex" or the "Company") (Nasdaq:MLTX) securities between March 17, 1999 and December 4, 2000 inclusive (the "Class Period").
The complaint charges that defendants violated Sections 11, 12 and 15 of the Securities Act of 1933 and Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. Among other things, plaintiff claims that Multex's offering documents filed in connection with the Company's initial public offering (the "IPO") failed to disclose that certain underwriters in the offering had solicited and received additional, excessive and undisclosed commissions from certain investors in exchange for, which it allocated to those investors substantial blocks of Multex shares issued in connection with the offering. However, to receive the allocations (i.e., the ability to purchase shares) at $14.00, the defendant underwriters' brokerage customers had to agree to purchase additional shares in the aftermarket at progressively higher prices. The requirement that customers make additional purchases at progressively higher prices as the price of Multex stock rocketed upward (a practice known on Wall Street as "laddering") drove Multex's share price up to artificially high levels. This artificial price inflation enabled both the underwriters and their customers to reap enormous profits by buying Multex stock at the $14.00 IPO price and then selling it later for a profit at inflated aftermarket prices. Moreover, as alleged in the complaint, the SEC and U.S. Attorneys' Office are investigating underwriting practices in connection with several other initial public offerings.
Plaintiff seeks to recover damages on behalf of himself and all other individual and institutional investors who purchased or otherwise acquired Multex securities between March 17, 1999 and December 4, 2000, 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 Multex securities during the Class Period, you may, not later than July 9, 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