Thursday July 11, 6:11 pm Eastern Time
Press
Release
SOURCE: Finkelstein, Thompson & Loughran
Lycos,
Inc. Investor Pursues Shareholders' Rights Claim Against
Merrill Lynch After Learning of the $100 Million
Settlement with the New York Attorney General
WASHINGTON, July 11 /PRNewswire/ -- Finkelstein,
Thompson & Loughran has filed a securities fraud class
action lawsuit against Merrill Lynch & Co., Inc. and the
former head of its Internet group, Henry Blodget, on
behalf of purchasers of Lycos, Inc. (n/k/a/ Terra
Networks, S.A. (Nasdaq:
TRLY
-
News)
securities between June 15, 1999 and May 17, 2000,
inclusive (the "Class Period").
Recently, the New York Attorney General, Eliot L.
Spitzer lodged a similar probe against Merrill Lynch
concerning Aether Systems and other "new economy"
companies. Eliot L. Spitzer's published probe discusses:
Buy.com, GoTo.com (n/k/a Overture Services (Nasdaq:
OVER
-
News)),
iVillage (Nasdaq:
IVIL
-
News),
Looksmart (Nasdaq:
LOOK
-
News),
Mypoints.com, Quokka Sports (PNK: QKKAQ.PK), Webvan (PNK:
WBVNQ.PK), and Lifeminders (n/k/a Cross Media Marketing
Corp (Amex:XMM
-
News)).
Subsequently, Merrill Lynch agreed to pay $100 million
to settle these charges. On June 5, 2002, Eliot L.
Spitzer was reported as saying that "investors should
use (the published probe) to regain some of their stock
losses."
The
Complaint, filed in the United States District Court for
the Eastern District of Michigan, alleges that Merrill
Lynch and its well-known former Internet stock analyst
Henry Blodget violated the federal securities laws by
knowingly issuing false and misleading analyst reports
regarding these "new economy" companies during the Class
Period. Based on e-mails and other internal Merrill
Lynch communications, which were made public as a result
of the investigation conducted by the New York State
Attorney General, Eliot L. Spitzer, the Complaint
alleges that Defendants failed to disclose a significant
conflict of interest between their investment banking
and research departments. Specifically, the Complaint
alleges that Henry Blodget and other Merrill Lynch
analysts issued very favorable analyst reports regarding
these "new economy" companies to the public when they
allegedly knew that the positive recommendations were
unwarranted and false. The Complaint further alleges
that, unbeknownst to the investing public, Merrill
Lynch's buy recommendations and price targets for these
"new economy" companies were driven by its efforts to
attract lucrative investment banking business from these
"new economy" companies rather than by the companies'
fundamental merits.
Plaintiff
seeks to recover damages on behalf of all investors who
purchased Lycos, Inc. securities during the Class Period
and who suffered damages as a result, and is represented
by the law firm of Finkelstein, Thompson & Loughran, of
Washington, DC. Finkelstein, Thompson & Loughran has
over thirty years of securities litigation experience,
has broad experience in representing defrauded investors
in shareholder class actions, and has been appointed to
lead positions in many such actions in federal and state
courts throughout the United States.
If you
are a member of the Class described above, and if you
meet certain other legal requirements, you may, not
later than September 9, 2002, move the Court to serve as
a lead plaintiff. If you wish to discuss the action
involving Lycos, Inc. or New York State Attorney
General, Eliot L. Spitzer's probe, or have any questions
concerning this notice or your rights or interests,
please contact Conor R. Crowley or Adam T. Savett with
Finkelstein, Thompson & Loughran by e-mail at crc@ftllaw.com
or ats@ftllaw.com .
SOURCE: Finkelstein, Thompson & Loughran
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