COLCHESTER, Conn., May 17, 2007 (PRIME NEWSWIRE) -- On May 16, 2007, Scott+Scott, LLP, filed a class action against Yahoo! Inc. ("Yahoo!" or the "Company") (Nasdaq:YHOO) and certain of its officers and directors in the U.S. District Court for the Northern District of California. The action is on behalf of Yahoo! publicly traded securities purchasers during the period April 8, 2004 and July 18, 2006, inclusive (the "Class Period"), for violations of the Securities Exchange Act of 1934. The complaint alleges that defendants made false and misleading statements and material omissions regarding the Company's business and operations and that, as a result, the price of the Company's securities was inflated during the Class Period, thereby harming investors.
If you purchased Yahoo! stock during the Class Period and wish to serve as a lead plaintiff in the action, you must move the Court no later than July 10, 2007. Any member of the investor class 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, http://www.scott-scott.com, for more information. There is no cost or fee to you.
According to the complaint, during the Class Period, defendants made false and misleading statements and omissions regarding the Company's business, financial results and forward guidance. Specifically, Defendants failed to disclose to the investing public the following adverse facts: (a) false, misleading and deceptive means were being used to promote and sell the Company's business to business ("B2B") advertising services to customers seeking a presence for the generation of marketing opportunities on the Internet; (b) revenues generated from Yahoo! B2B activities were unsustainable and fraudulent in nature, as Yahoo! misrepresented and deceptively described the Company's abilities to deliver the claimed attributes and quality of its content and services; (c) Yahoo! advertising services were operationally flawed and defective, and did not favorably compare to the quality and cost of B2B services offered by its competitors; and (d) Yahoo! was, in fact losing market share to other Internet search providers.
As a result of defendants' false statements, Yahoo! stock traded at artificially inflated prices during the Class Period. Then, on July 18, 2006, the Company issued a shocking press release which detailed an unexpected and stunning drop in revenues. As a result, on July 18, 2006, shares of Yahoo! stock plunged $7.04 per share, for a loss of over 21% percent, to close on July 18, 2006 at $25.20 per share, on extremely high volume of over 204.3 million shares.
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 http://www.primenewswire.com/ca/