BALA CYNWYD, Pa., Aug. 16, 2001 (PRIMEZONE) -- Schiffrin & Barroway, LLP announced today that it recently filed lawsuits against iBasis, Inc., Breakaway Solutions, Inc., Critical Path, Inc. and McData Corporation for violations of the federal securities laws.
If you purchased the securities of any of the companies listed below during the class period, 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
IBASIS, INC. (Nasdaq:IBAS) (Class Period: 11/09/99 - 12/06/00). On or about November 9, 1999, iBasis commenced an initial public offering of 6,800,000 of its shares of common stock at an offering price of $16 per share (the "iBasis IPO"). In connection therewith, iBasis filed a registration statement, which incorporated a prospectus (the "Prospectus"), with the SEC. The complaint alleges that the Prospectus was materially false and misleading because it failed to disclose, among other things, that: (i) defendant had solicited and received excessive and undisclosed commissions from certain investors in exchange for which defendant allocated to those investors material portions of the restricted number of iBasis shares issued in connection with the iBasis IPO; and (ii) defendant had entered into agreements with customers whereby defendant agreed to allocate iBasis shares to those customers in the iBasis IPO in exchange for which the customers agreed to purchase additional iBasis shares in the aftermarket at pre-determined prices. As 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 September 10, 2001.
BREAKAWAY SOLUTIONS, INC. (Nasdaq:BWAY) (Class Period: 10/05/99 - 12/06/00). On or about October 5, 1999, Breakaway and selling shareholders commenced an initial public offering of 3,000,000 of its shares of common stock at an offering price of $14 per share (the "Breakaway IPO"). In connection therewith, Breakaway filed a registration statement, which incorporated a prospectus (the "Prospectus"), with the SEC. The complaint 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 Breakaway shares issued in connection with the Breakaway IPO; and (ii) defendants had entered into agreements with customers whereby defendants agreed to allocate Breakaway shares to those customers in the Breakaway IPO in exchange for which the customers agreed to purchase additional Breakaway shares in the aftermarket at pre-determined prices. As 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 September 14, 2001.
CRITICAL PATH, INC. (Nasdaq:CPTH) (Class Period: 3/29/99 - 12/06/00). On or about March 29, 1999, Critical Path commenced an initial public offering of 4.5 million shares of common stock at $24.00 per share (the "IPO"). In connection therewith, Critical Path filed a registration statement, which incorporated a prospectus (the 'Prospectus"), with the SEC. The complaint alleges that the Prospectus was false and misleading because it failed to disclose, among other things, that: (i) the Underwriter Defendants' agreement with certain investors to provide them with significant amounts of restricted Critical Path shares in the IPO in exchange for exorbitant and undisclosed commissions; and (ii) the agreement between the Underwriter Defendants and certain of its customers whereby the Underwriter Defendants would allocate shares in the IPO to those customers in exchange for the customers' agreement to purchase Critical Path shares in the after-market 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 September 17, 2001.
McDATA CORPORATION (Nasdaq:MCDT) (Class Period: 8/09/00 - 12/06/00). On or about August 9, 2000, McData commenced an initial public offering of 12,500,000 of its shares of common stock at an offering price of $28 per share (the "McData IPO"). In connection therewith, McData filed a registration statement, which incorporated a prospectus (the "Prospectus"), with the SEC. The complaint alleges that the Prospectus was materially false and misleading because it failed to disclose, among other things, that: (i) Credit Suisse, Merrill Lynch, Bear Stearns and Robertson Stephens had solicited and received excessive and undisclosed commissions from certain investors in exchange for which Credit Suisse, Merrill Lynch, Bear Stearns and Robertson Stephens allocated to those investors material portions of the restricted number of McData shares issued in connection with the McData IPO; and (ii) Credit Suisse, Merrill Lynch, Bear Stearns and Robertson Stephens had entered into agreements with customers whereby Credit Suisse, Merrill Lynch, Bear Stearns and Robertson Stephens agreed to allocate McData shares to those customers in the McData IPO in exchange for which the customers agreed to purchase additional McData 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 September 18, 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.