LITTLE ROCK, Ark., Nov. 6, 2001 (PRIMEZONE) -- The Law Firm of Cauley Geller Bowman & Coates, LLP announced today that a class action has been filed in the United States District Court for the Northern District of California on behalf of purchasers of Loudcloud ("Loudcloud" or the "Company") (Nasdaq:LDCL) common stock issued pursuant to the March 8, 2001 Prospectus. A copy of the complaint filed in this action is available from the Court, or can be viewed on the firm's Website at http://www.classlawyer.com/pr/loudcloud.pdf.
The complaint charges Loudcloud and certain of its officers and directors with violations of the Securities Exchange Act of 1933. The complaint alleges that the Prospectus used by defendants to sell $150 million worth of Loudcloud stock was false and misleading because, among other things, it failed to disclose: (a) Loudcloud's plan to substantially reduce its work force and to restructure immediately following the Offering; (b) that the Offering was not raising funds sufficient to enable the Company to reach profitability and accomplish the planned expansion described in the Prospectus; (c) that a major contract to which one of the underwriters was a party was being terminated; and (d) that in order to enable the Offering to go forward, sales of shares were being made to insiders and the selling price of the Offering was artificially maintained by the undisclosed sale of part of the Offering to insiders.
As the truth about Loudcloud and its operations reached the market, the price of Loudcloud shares fell to less than $2 per share, inflicting over $100 million in damages upon plaintiff and the Class.
If you bought Loudcloud common stock issued pursuant to the March 8, 2001 Prospectus and you wish to serve as lead plaintiff, you must move the Court no later than November 30, 2001. If you are a member of this class, you can join this class action online at http://www.classlawyer.com/sign_up.html. Any member of the purported class may move the Court to serve as lead plaintiff through Cauley Geller Bowman & Coates, LLP or other counsel of their choice, or may choose to do nothing and remain an absent class member.
Cauley Geller Bowman & Coates, LLP has substantial experience representing investors in securities fraud class action lawsuits such as this. The firm has offices in Florida, Arkansas and California, but represents investors throughout the nation. If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you are encouraged to call or e-mail the Firm or visit the Firm's Website at www.classlawyer.com.
CAULEY GELLER BOWMAN & COATES, LLP Investor Relations Department: Jackie Addison, Sue Null or Shelly Nicholson P.O. Box 25438 Little Rock, AR 72221-5438 Toll Free: 1-888-551-9944 E-mail: info@classlawyer.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.