BALA CYNWYD, Pa., July 11, 2001 (PRIMEZONE) -- Schiffrin & Barroway, LLP announced today that it recently filed lawsuits against MP3.com, Inc., Gadzoox Networks, Inc., Expedia, Inc. and Digital Impact, Inc. for violations of the federal securities laws.
If you purchased the securities of any of the companies listed below during the respective class periods, you may be a member of the class and have until the date specified to move the court to become the lead plaintiff. For more information on a particular lawsuit and to view the complaint, you may visit our Website at www.sbclasslaw.com. To learn more about your rights and interests in these cases and your ability to potentially recoup your losses, please contact Schiffrin & Barroway directly at 888-299-7706 (toll free) or 610-667-7706, fax number 610-667-7056 or by e-mail at info@sbclasslaw.com.
MP3.COM, INC. (Nasdaq:MPPP) (Class Period: 07/21/99 - 05/16/01). The complaint charges MP3 and certain of its officers and directors with issuing a Registration Statement and Prospectus in connection with MP3's initial public offering (the "IPO") that contained materially false and misleading formation and failed to disclose material information. Specifically, the complaint alleges that the Prospectus was false and misleading because it failed to disclose (i) The Underwriter Defendants' agreement with certain investors to provide them with significant amounts of restricted MP3 shares in the IPO in exchange for exorbitant and undisclosed commissions; and (ii) the agreement between the Underwriter Defendants and certain of their customers whereby the Underwriter Defendants would allocate shares in the IPO to those customers in exchange for the customers' agreement to purchase MP3 shares in the after-market at pre-determined prices. Furthermore, the SEC is investigating underwriting practices in connection with several other initial public offerings, including the offerings of VA Linux Systems, Inc., Ariba Inc. and United Parcel Service, Inc. The complaint was filed in the U.S. District Court for the Northern District of New York. The lead plaintiff motion must be filed no later than July 17, 2001.
GADZOOX NETWORKS, INC. (Nasdaq:ZOOX) (Class Period: 07/19/99 - 12/06/00). The complaint charges Gadzoox and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. Specifically, the complaint alleges that on or about July 19, 1999, Gadzoox commenced an initial public offering of 3,500,000 of its shares of common stock at an offering price of $21.00 per share (the "Gadzoox IPO"). In connection therewith, Gadzoox filed a registration statement, which incorporated a prospectus (the "Prospectus"'), with the SEC. The complaint further alleges that the Prospectus was materially false and misleading because it failed to disclose, among other things, that: (i) Credit Suisse First Boston Corp. ("Credit Suisse") and BancBoston Robertson Stephens ("Robertson Stephens") had solicited and received excessive and undisclosed commissions from certain investors in exchange for which Credit Suisse and Robertson Stephens allocated to those investors material portions of the restricted number of Gadzoox shares issued in connection with the Gadzoox IPO; and (ii) Credit Suisse and Robertson Stephens had entered into agreements with customers whereby Credit Suisse and Robertson Stephens agreed to allocate Gadzoox shares to those customers in the Gadzoox IPO in exchange for which the customers agreed to purchase additional Gadzoox shares in the aftermarket at pre-determined prices. The complaint was filed in the U.S. District Court for the Southern District of New York. The lead plaintiff motion must be filed no later than August 6, 2001.
EXPEDIA, INC. (Nasdaq:EXPE) (Class Period: 11/09/99 - 12/06/00). The complaint charges Expedia and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. Specifically, the complaint alleges that on or about November 9, 1999, Expedia commenced an initial public offering of 5,200,000 of its shares of common stock at an offering price of $14 per share (the "Expedia IPO"). In connection therewith, Expedia filed a registration statement, which incorporated a prospectus (the "Prospectus"), with the SEC. The complaint further alleges that the Prospectus was materially false and misleading because it failed to disclose, among other things, that: (i) defendants had solicited and received excessive and undisclosed commissions from certain investors in exchange for which defendants allocated to those investors material portions of the restricted number of Expedia shares issued in connection with the Expedia IPO; and (ii) defendants had entered into agreements with customers whereby defendants agreed to allocate Expedia shares to those customers in the Expedia IPO in exchange for which the customers agreed to purchase additional Expedia shares in the aftermarket at pre-determined prices. As further alleged in the complaint, the SEC is investigating underwriting practices in connection with several other initial public offerings. The complaint was filed in the U.S. District Court for the Southern District of New York. The lead plaintiff motion must be filed no later than August 6, 2001.
DIGITAL IMPACT, INC. (Nasdaq:DIGI) (Class Period: 11/22/99 - 12/06/00). The complaint charges Digital and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. Specifically, the complaint alleges that on or about November 22, 1999, Digital Impact commenced an initial public offering of 4,500,000 of its shares of common stock at an offering price of $15.00 per share (the "Digital Impact IPO"). In connection therewith, Digital Impact filed a registration statement, which incorporated a prospectus (the "Prospectus"'), with the SEC. The complaint further alleges that the Prospectus was materially false and misleading because it failed to disclose, among other things, that: (i) Credit Suisse First Boston Corp. ("Credit Suisse") had solicited and received excessive and undisclosed commissions from certain investors in exchange for which Credit Suisse allocated to those investors material portions of the restricted number of Digital Impact shares issued in connection with the Digital Impact IPO; and (ii) Credit Suisse had entered into agreements with customers whereby Credit Suisse agreed to allocate Digital Impact shares to those customers in the Digital Impact IPO in exchange for which the customers agreed to purchase additional Digital Impact shares in the aftermarket at pre-determined prices. The complaint was filed in the U.S. District Court for the Southern District of New York. The lead plaintiff motion must be filed no later than August 6, 2001.
Schiffrin & Barroway, LLP has prosecuted shareholder class actions for over fourteen years and has recovered more than $1 billion for investors. If you are a shareholder in any of the companies listed above and would like to be a lead plaintiff in one of these securities class actions, please contact Schiffrin & Barroway at 888-299-7706.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca