NEW YORK, May 21, 2001 (PRIMEZONE) -- The following was released today by Bull & Lifshitz, LLP:
Notice is hereby given that on May 21, 2001, a securities class action lawsuit was filed in the United States District Court for the Southern District of New York against Ariba, Inc. ("Ariba") (Nasdaq:ARBA), Keith J. Krach, Edward P. Kinsey and Morgan Stanley & Co. ("Morgan Stanley") on behalf of all persons who acquired the Company's common stock between June 23, 1999 and March 22, 2001, inclusive (the "Class Period").
The Complaint alleges that defendants violated the federal securities laws, including Sections 10(b) and 20 of the Securities Exchange Act of 1934, and Securities Act of 1933, by issuing a materially false and misleading Registration Statement and Prospectus (the "Prospectus"). The Complaint alleges that the Prospectus failed to disclose (i) Morgan Stanley's agreement with certain investors to provide them with significant amounts of restricted Ariba shares in the IPO in exchange for exorbitant and undisclosed commissions; and (ii) the agreement between Morgan Stanley and certain of its customers whereby Morgan Stanley would allocate its shares in the IPO to those customers in exchange for the customers' agreement to purchase Ariba shares in the aftermarket at pre-determined prices.
The SEC is investigating underwriting practices in connection with other initial public offerings, including the offerings of Ariba, VA Linux Systems, Inc. (Nasdaq:LNUX) and United Parcel Services, Inc. (NYSE:UPS).
Plaintiff seeks to recover damages on his own behalf and on behalf of acquirers of Ariba's common stock during the Class Period. Plaintiff is represented in this class action by the New York law firm of Bull & Lifshitz, LLP, whose members have extensive experience representing shareholders in class actions.
If you purchased Ariba securities during the Class Period or were issued Ariba securities you may, not later than May 21, 2001, move the court to serve as a lead plaintiff, provided you meet certain legal requirements.
If you wish to discuss this action, any other potential action or have any questions concerning this notice, your rights or interests with respect to this matter, please contact Peter D. Bull, Esq. or Joshua M. Lifshitz, Esq. at classlaw@bellatlantic.net or Phone: (212) 869-9449.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.