FindWhat faces Class Action Lawsuit
11 May 2005
The law firm of Milberg Weiss Bershad & Schulman has filed a class action lawsuit on behalf of purchasers of the securities of FindWhat.com.
The suit, on behalf of the purchasers of securities between January 5th 2004 and May 4th 2005, states that FindWhat issued, or caused to be issued, false and misleading statements during the Class Period to artificially inflate the value of FindWhat.com stock.
The case is pending in the United States District Court for the Middle District of Florida against defendant FindWhat.com's Craig Pisaris-Henderson, Brenda Aguis, Frederick E Guest and Phillip R Thune.
FindWhat has also faced allegations of click fraud and other problems associated with second tier search engines and has seen share prices tumble in recent weeks.
The law firm claims: "Beginning on January 5th 2004, with the completion of the first in a series of mergers and acquisitions by FindWhat in 2004, they began to blow their horn and accrue intangible assets in excess of their actual value."
The law firm notes that, while FindWhat had misled the investing public and inflated the value of FindWhat.com's stock during the class period, insiders sold 680,959 shares for personal proceeds of $11,320.179.
Immediately following both of these disclosures, the company's stock plummeted, losing $2.04 per share, or 26 per cent of its value on May 3rd, and an additional $2.33 per share (38 per cent) on May 5th 2005.
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