NEW YORK, May 18, 2001, (PRIMEZONE) -- Notice is hereby given that a class action lawsuit was commenced in the United States District Court for the District of Nevada on behalf of all purchasers of PurchasePro.com, Inc. ("PurchasePro" or the "Company") (Nasdaq:PPRO) securities between July 19, 2000 and April 25, 2001, inclusive (the "Class Period").
The complaint charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. The complaint alleges, among other things, that the defendants issued a series of false and misleading press releases concerning PurchasePro's financial condition and business prospects. Specifically, the complaint alleges that defendants improperly recognized revenue in order to artificially inflate the price of PurchasePro's securities for their own personal benefit. As a result, the price of the Company's common stock was inflated throughout the Class Period, reaching as high as $44.95 per share, allowing defendants to collectively sell millions of dollars worth of shares in personally held PurchasePro Stock. However, on April 25, 2001, the Company shocked the market when it announced that it expected first quarter results to be below estimates "primarily due to deferred recognition of certain license revenue." In response, the stock price of PurchasePro plummeted approximately 35% in one day from $6.22 to $4.05, on volume of more than 11 million shares.
Plaintiff seeks to recover damages on behalf of himself and all other individual and institutional investors who purchased or otherwise acquired PurchasePro securities between July 19, 2000, and April 25, 2001, excluding defendants and their affiliates. Plaintiff is represented by Faruqi & Faruqi, LLP, a law firm with extensive experience in prosecuting class actions, and significant expertise in actions involving corporate fraud.
If you purchased PurchasePro securities during the Class Period, you may, not later than June 25, 2001, 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. If you wish to discuss this action, or have any questions concerning this notice or your rights or interests, please contact:
ANTHONY VOZZOLO, ESQ. FARUQI & FARUQI, LLP 320 East 39th Street New York, NY 10016 Telephone: (877) 247-4292 or (212) 983-9330 e-mail (FaruqiLawAV@aol.com)
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.