NEW YORK, Feb. 23, 2005 (PRIMEZONE) -- Murray, Frank & Sailer LLP has filed a class action lawsuit in the United States District Court for the Southern District of New York on behalf of shareholders who purchased or otherwise acquired the securities of Mamma.com Inc. ("Mamma.com" or the "Company") (Nasdaq:MAMA) between March 2, 2004 and February 15, 2005, inclusive (the "Class Period").
The complaint charges Mamma.com and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Mamma.com provides information retrieval on the Internet through its metasearch engine www.mamma.com. The Company is focused on being a provider of online marketing solutions to advertisers.
The complaint alleges that during the Class Period, defendants caused Mamma.com's shares to trade at artificially inflated levels through the issuance of false and misleading financial statements. As a result of this inflation, Mamma.com was able to complete a private offering, raising proceeds of $16.6 million on the sale of stock and warrants in June 2004.
On February 16, 2005, the Company issued a press release announcing that "it has been unable to reach an agreement on the terms of the audit engagement with PricewaterhouseCoopers LLP ('PWC') for the year ended December 31, 2004. Accordingly, PWC will not act as the Company's independent auditor for the audit of the Company's financial statements for the year ended December 31, 2004 . . . . As a result of these developments, it is unlikely that the Company will file its audited financial statements for the year ended December 31, 2004 and related disclosures within the timeframe prescribed by Canadian securities rules." The stock dropped below $4 per share on this news.
Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.
If you purchased or otherwise acquired Mamma.com securities on any world exchange between March 2, 2004 and February 15, 2005, and sustained damages, you may, no later than April 25, 2005, move the Court to serve as lead plaintiff. Shareholders outside the United States may also join the action, regardless of which exchange was used to purchase the securities. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this class action as lead plaintiff online at http://www.murrayfrank.com/CM/NewCases/NewCases.asp. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff's counsel Eric J. Belfi or Aaron D. Patton of Murray, Frank & Sailer LLP.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca