COLCHESTER, Conn., Oct. 10, 2006 (PRIMEZONE) -- On October 10, 2006, Scott+Scott, LLC, filed a class action against Loudeye Corp. ("Loudeye" or the "Company") (Nasdaq:LOUD) and certain officers and directors in the U.S. District Court for the Western District of Washington. The action is on behalf of Loudeye securities purchasers during the period from May 19, 2003 through November 9, 2005, inclusive (the "Class Period"), for securities law violations. The complaint alleges that defendants made false and misleading statements and material omissions regarding the Company's operations. As a result, the price of the Company's securities was inflated during the Class Period, thereby harming investors.
If you purchased Loudeye securities during the Class Period and wish to serve as a lead plaintiff in the action, you must move the Court no later than December 4, 2006. Any purported class member may move the Court to serve as lead plaintiff through counsel of its choice, or may choose to do nothing and remain an absent class member. If you wish to discuss this action or have questions concerning this notice or your rights, please contact Scott+Scott (scottlaw@scott-scott.com, 800/404-7770, 860/537-5537) or visit the Scott+Scott website, www.scott-scott.com, for more information. There is no cost or fee to you.
The complaint alleges that Loudeye made false and misleading statements that deceived the investing public regarding its business, operations, management and the intrinsic value of Loudeye common stock. Meanwhile, the Company raised almost $60 million through the sale of stock and warrants to private equity investors, while materially misrepresenting its business prospects. The complaint further alleges that Loudeye insiders have negotiated a merger with Nokia Corp. mainly for the purpose of insulating themselves from liability for their prior illicit and improper conduct.
Contrary to the representations made by the Company during the Class Period, the complaint states that Loudeye actually was operating well below guidance, was not successfully integrating its acquisitions and was suffering from severe financial and operational control deficiencies. Following each of these disclosures the Company's share price declined precipitously -- falling from a Class Period high of almost $30.00 per share in late 2004 (adjusted to reflect May 2006 1:10 split), to less than $2.00 per share by the time that defendants announced that the remaining assets of the Company would be sold to Nokia Corp.
The plaintiff is represented by Scott+Scott, a firm with significant experience in prosecuting investor class actions. The firm dedicates itself to client communication and satisfaction and currently is litigating major securities, antitrust and employee retirement plan actions throughout the United States. The firm represents pension funds, charities, foundations, individuals and other entities worldwide.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.