BALA CYNWYD, Pa., Jan. 22, 2003 (PRIMEZONE) -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Northern District of Texas on behalf of all purchasers of the common stock of Hotels.com (Nasdaq:ROOM) from October 23, 2002 and January 6, 2003 , inclusive (the "Class Period").
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@sbclasslaw.com.
The complaint charges Hotels.com and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. Specifically, the complaint alleges that (i) the Company lacked sufficient internal controls and therefore was unable to understand its true financial standing; (ii) that the Company's revenues and net income for the fourth quarter 2002 have been overstated, because the Company did not experience an increase in average daily rates (ADRs); (iii) and because of these problems, the value of the Company's balance sheet and income statement were materially overstated at all relevant times.
On January 6, 2003, the Company announced that it would fall materially short of hitting its forecasted projections. In response to the news that Hotels.com previously-reported financial results may not in fact be what they seemed (an accurate financial summary of the Company's operations), Hotels.com's shares plummeted 31% -- the biggest drop since the Company went public in March 2000 -- on NASDAQ, where the Company was one of the largest percentage losers (Reuters). The shares closed down 25% or $15.02 and dropped from $59.04 per share on January 3, 2003 (Friday) to $44.02 per share on January 6, 2003 (Monday) on a heavy volume 10,782,900 shares.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, LLP, which prosecutes class actions on behalf of investors and shareholders. For more information on Schiffrin & Barroway, or to sign-up to participate in this action online, please visit http://www.sbclasslaw.com/cgi/signup.cgi.
If you are a member of the class described above, you may, not later than March 11, 2003, 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.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.