PHILADELPHIA, Dec. 1, 2001 (PRIMEZONE) -- The law firm of Berger & Montague, P.C. (http://www.bergermontague.com) filed a class action suit on behalf of an investor against Apropos Technology, Inc. ("Apropos" or the "Company") (Nasdaq:APRS) and its principal officers and directors in the United States District Court for the Northern District of Illinois on behalf of all persons or entities who purchased Apropos stock in or traceable to the Company's February 17, 2000 initial public offering (the "IPO"), or in the open market during the Class Period from February 17, 2000 through April 10, 2001. This is the only action filed on behalf of purchasers of Apropos during the period February 17, 2000 through April 10, 2001. The class period in previously filed actions ended on May 15, 2000.
The complaint alleges that pursuant to the Registration Statement on or about February 17, 2000, Apropos Technology commenced an initial public offering of 3.7 million of its shares of common stock at an offering price of $22 per share. Apropos and its principal officers and directors violated Sections 11 and 15 of the Securities Exchange Act of l933 by making material misrepresentations in the Prospectus and Registration Statement. The Company misrepresented the uses to which it would put the money raised in the IPO. Specifically, the Prospectus claimed that to achieve its strategic goals, the money would be used for research and development to enhance the Company's products and for marketing and sales. In fact, a large part of the money raised was simply held as cash or short-term investments. Accordingly, the statements of Apropos about its goals and the uses for the proceeds of the IPO are false and misleading.
The complaint also alleges that the Registration Statement and Prospectus for the IPO contained material misrepresentations and omissions regarding the role that defendants Brady and Bach played in the Company at the time of the IPO. Specifically, the Prospectus misrepresented that these two were both active members of the executive management team and the Company's most senior technology officers. In July 1999, Brady failed in an effort to have the Company's Board of Directors oust defendant Kerns from the company. As a result, Brady packed up his office and stopped reporting for work, effectively ending his tenure as Chief Technology Officer or "CTO". He had no involvement in the day-to-day affairs of the Company, nor was he involved in the development of its business and technology. At about the same time, Bach also fell out of favor with Kerns. Kerns limited Bach's role in the Company to being in charge of two employees responsible for designing and implementing customer interfaces. At the time of the IPO, the Company's technology and development departments were in disarray. None of these material facts were disclosed to the investing public in the IPO documents.
As a result of the misrepresentations, the investing public was misled. On April 10, 2001, the share price of Apropos Technology declined to $2.98 from a class period high of $70 near the beginning of the class period.
If you purchased Apropos Technology common stock in or traceable to the Company's February 17, 2000 initial public offering or in the open market during the period from February 17, 2000 through April 10, 2001, inclusive, you may, no later than December 31, 2001, move to be appointed as a Lead Plaintiff. A Lead Plaintiff is a representative party that acts on behalf of other class members in directing the litigation. The Private Securities Litigation Reform Act of 1995 directs Courts to assume that the class member(s) with the "largest financial interest" in the outcome of the case will best serve the class in this capacity. Courts have discretion in determining which class members(s) have the "largest financial interest," and have appointed Lead Plaintiffs with substantial losses in both absolute terms and as a percentage of their net worth. If you have sustained substantial losses in Apropos Technology common stock during the Class Period, please contact Berger & Montague, P.C. at investorprotect@bm.net for a more thorough explanation of the Lead Plaintiff selection process.
The law firm of Berger & Montague, P.C. has more than 50 attorneys, all of whom represent plaintiffs in complex litigation. The Berger firm has extensive experience representing plaintiffs in class action securities litigation and has played lead roles in major cases over the past 25 years which have resulted in recoveries of several billion dollars to investors. The firm is currently representing investors as lead counsel in actions against Rite Aid, Sotheby's, Waste Management, Inc., Sunbeam, Boston Chicken and IKON Office Solutions, Inc. The standing of Berger & Montague, P.C. in successfully conducting major securities and antitrust litigation has been recognized by numerous courts. For example:
"Class counsel did a remarkable job in representing the class
interests." In Re: IKON Offices Solutions Securities Litigation.
Civil Action No. 98-4286(E.D.Pa.) (partial settlement for
$111 million approved May, 2000).
"...[Y]ou have acted the way lawyers at their best ought to act.
And I have had a lot of cases...in 15 years now as a judge and I
cannot recall a significant case where I felt people were better
represented than they are here ... I would say this has been the
best representation that I have seen." In Re: Waste Management,
Inc. Securities Litigation, Civil Action No. 97-C 7709 (N.D.
Ill.) (settled in 1999 for $220 million).
If you purchased Apropos securities during the Class Period, or have any questions concerning this notice or your rights with respect to this matter, please contact:
Sherrie R. Savett, Esquire
Carole A. Broderick, Esquire
Elizabeth Fox, Esquire
Kimberly A. Walker, Investor Relations Manager
Berger & Montague, P.C.
1622 Locust Street
Philadelphia, PA 19103
Phone: 888-891-2289 or 215-875-3000
Fax: 215-875-5715
Website: http://www.bergermontague.com
e-mail: InvestorProtect@bm.net
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.