NEW YORK, May 20, 2002 (PRIMEZONE) -- The law firm of Pomerantz Haudek Block Grossman & Gross (www.pomerantzlaw.com) announced today that it filed a class action lawsuit on behalf of investors who purchased the common stock of GoTo.com, Inc. ("GoTo" or the "Company" and now known as Overture Services, Inc.) (Nasdaq:OVER) during the period from January 11, 2001 through June 6, 2001, inclusive (the "Class Period"). The case was filed in the United States District Court for the Southern District of New York and charges Merrill Lynch & Co., Inc. ("Merrill Lynch") and its former Internet research analyst Henry M. Blodget ("Blodget") with issuing misleading analyst reports about GoTo in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
The Pomerantz firm also represents shareholders of Excite@Home, 24/7 Real Media, Inc., Internet Capital Group, Inc. and Aether Systems, Inc. in other cases filed against Merrill Lynch and Blodget.
The Complaint alleges that in an effort to obtain investment banking business from GoTo, defendants issued positive ratings on the Company which were materially misleading as they were inconsistent with their own contemporaneous, private adverse assessments of GoTo. For example, the very day of the initiation of coverage, Blodget admitted in an e-mail that there was "nothing" interesting about GoTo except banking fees. The complaint also describes how defendants made their proposed rating for GoTo more palatable to GoTo management by downgrading a GoTo competitor. However, when defendants learned that GoTo had awarded its underwriting business to another bank, defendants downgraded GoTo in retribution.
On April 8, 2002, New York State Attorney General Eliot Spitzer announced that a ten-month investigation had revealed that Merrill Lynch's "supposedly independent and objective investment advice was tainted and biased by the desire to aid Merrill Lynch's investment banking business." Merrill Lynch's ratings on GoTo were among those challenged by the Attorney General.
If you purchased the common stock of GoTo during the Class Period, you have 60 days from today to ask the Court to appoint you as lead plaintiff for the Class. To serve as lead plaintiff, you must meet certain legal requirements. If you wish to review a copy of the Complaint, to discuss this action or have any questions, please contact Andrew G. Tolan, Esq. of the Pomerantz firm at 888-476-6529 (or (888) 4-POMLAW), toll free, or at agtolan@pomlaw.com by e-mail. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
The Pomerantz firm, which has offices in New York and Chicago, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz firm pioneered the field of securities class actions. Today, more than 50 years later, the Pomerantz firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca