BALA CYNWYD, Pa., Oct. 9, 2002 (PRIMEZONE) -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
A securities class action lawsuit pending in the U.S. District Court for the Southern District of New York (02-CV-7507) claims that Merrill Lynch & Co., Inc. ("Merrill Lynch") and its former star Internet research analyst, First Vice President Henry M. Blodget ("Blodget") misled shareholders about CMGI's (Nasdaq:CMGI) business and financial condition.
Plaintiff seeks damages for violations of Sections 10(b), and 20(a) of the Securities Exchange Act of 1934 (and/or the Securities Act of 1933) on behalf of all investors who bought CMGI securities between March 23, 1999 and October 6, 2000 (the "Class Period").
Schiffrin & Barroway, LLP has prosecuted shareholder class actions for over fourteen years and has recovered more than $1 billion for investors. If you are a shareholder of CMGI and want to learn more about this lawsuit and about becoming a lead plaintiff, you may visit our website at http://www.sbclasslaw.com/cgi/signup.cgi.
The complaint charges Merrill Lynch & Co., Inc. ("Merrill Lynch") and its former star Internet research analyst, First Vice President Henry M. Blodget ("Blodget") with knowingly issuing false and misleading analyst reports regarding CMGI during the Class Period. Based on e-mails and other internal Merrill Lynch communications, which were made public as a result of the investigation conducted by the New York State Attorney General, the Complaint alleges that Defendants failed to disclose a significant conflict of interest between their investment banking and research departments.
Specifically, the Complaint alleges that Henry Blodget and other Merrill Lynch analysts issued very favorable analyst reports regarding CMGI to the public when they allegedly knew that the positive recommendations were unwarranted and false. The Complaint further alleges that, unbeknownst to the investing public, Merrill Lynch's buy recommendations and price targets were driven by its efforts to attract lucrative investment banking business rather than by the companies' fundamental merits.
If you purchased CMGI securities between March 23, 1999 and October 6, 2000, you may be a member of the class and have until October 28, 2002 to move the court to become a lead plaintiff. In order to serve as lead plaintiff, however, you must meet certain legal requirements. To be a member of the class, however, you do not need to take any action at this time. Should you decide to seek appointment as a lead plaintiff, you may retain Schiffrin & Barroway, or retain counsel of your choice.
To learn more about your rights and interests in this case and your ability to potentially recoup your losses, please contact Schiffrin & Barroway (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) directly at 888-299-7706 (toll free) or 610-822-2221, fax number 610-822-0002, e-mail at info@sbclasslaw.com or visit our website at www.sbclasslaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca