NEW YORK, Nov. 2, 2004 (PRIMEZONE) -- Roy Jacobs & Associates has filed a class action lawsuit against IAC/InterActiveCorp ("IACI" or the "Company") (Nasdaq:IACI) and five of the Company's senior officers, on behalf of all persons or entities who purchased the securities of IACI during the period between March 19, 2003 through August 4, 2004, (the "Class Period"). The suit was filed in the United States District Court for the Southern District of New York.
On August 4, 2004, the Company issued its second quarter 2004 earnings release disclosing that net income had fallen 24% from the same quarter in 2003 and that the Company was cutting its forecast for full-year operating profits due to increased Internet competition, which was impacting the Company's performance. As a result of this news, shares of IACI fell dramatically from the Class Period high of $42.74 per share on July 7, 2003, to close at $22.80 per share on August 4, 2004, erasing over $10 billion in shareholder value.
IACI owns Expedia, Hotels.com, Hotwire, Home Shopping Network, Ticketmaster, Match.com, and LendingTree.com. The complaint alleges that the Company and its Chairman Barry Diller, CFO Dara Khosrowshahi, Executive Vice President Julius Genachowski, Director Richard N. Barton, and Vice Chairman Victor Kaufman violated the federal securities laws by issuing false and misleading statements concerning the Company's operations, business model, financial results and growth prospects.
According to the Complaint, the Company failed to disclose material adverse facts, including: (1) that profits were being adversely impacted by the decrease in available discounted hotel rooms and airline tickets; (2) that IACI had to expend additional resources in order to market its products and brands in the maturing Internet industry, and was facing increased Internet competition; (3) that the favorable performance of Expedia and the Hotels.com division were largely dependent on the Company's improper recognition of revenue; and (4) that defendants lacked a reasonable basis for their positive statements about the Company's growth and progress.
If you purchased the IACI securities during the Class Period, you have until November 19, 2004, to ask the Court to appoint you as one of the lead plaintiffs for the Class. In order to serve as lead plaintiff, you must meet certain legal requirements.
If you wish to discuss this action or have any questions, please contact:
ROY JACOBS & ASSOCIATES Roy L. Jacobs 1-888-884-4490 classattorney@pipeline.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.