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Case ID: 4248 | Stocks | 03/22/2005
A class action has been filed against Mamma.com Inc. (NasdaqSC:MAMA), and certain of its officers and directors by stockholders who purchased the company's common stock between May 12, 2004 and February 16, 2005. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock.
According to a press release dated February 22, 2005, a class action lawsuit was filed on behalf of all purchasers of the common stock of Mamma.com Inc. The complaint charges Mamma.com and certain of it officers with violations of the Securities Exchange Act of 1934. Mamma.com provides information retrieval on the Internet through its metasearch engine, http://www.mamma.com. The Company derives its revenues from two sources, including search services and banner advertising services, with customers located in the United States and Canada. Specifically, the complaint alleges the defendants failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that Irving Kott, a legendary Canadian stock promoter with a long history of stock manipulation, had a significant undisclosed interest in the Company; (2) that Kott and his associates were manipulating the Company's stock price by engaging in a classic "pump and dump" scheme to defraud; and (3) that the Company itself was manipulating its financial results in order to maintain its artificially inflated share price so that the "pump and dump" scheme would endure. Additionally, the complaint alleges that during the Class Period, and with its stock trading at artificially inflated levels, the Company was able to acquire Digitalarrow LLC and High Performance Broadcasting Inc. (collectively "Digital Arrow") for $1,050,000 and the issuance of 90,000 common shares of Mamma.com, and was able to enter into a letter of intent ("LOI") whereby Mamma.com would acquire all of the shares of Copernic Technologies for a combination of cash and shares of Mamma.com. Moreover, the Company was able to raise $16.6 million through a private placement while its shares traded at artificially inflated levels. On or around February 16, 2005, shares of Mamma.com were halted. Shortly thereafter, Mamma.com announced that it had been unable to reach an agreement on the terms of the audit engagement with PricewaterhouseCoopers LLP ("PWC") for the year ended December 31, 2004. Accordingly, PWC would not act as the Company's independent auditor for the audit of the Company's financial statements for the year ended December 31, 2004. News of this sent the stock into a downward spiral. As a result, shares of Mamma.com fell $2.02 per share, or 32.27% to close at $4.25 per share. If you bought Mamma.com Inc. securities between May 12, 2004 and February 16, 2005, inclusive, and would like to obtain information about the lawsuit, then you are invited to call (866) 467-1400 to speak with an attorney. At Lawcash.com, it is our goal to keep you informed about important legal cases, class actions and settlements. Our lawyers offer free legal evaluations in tort cases, class actions, personal injury, and other lawsuits because we are dedicated to helping you resolve your legal complaints. Other Stocks Cases of Interest A class action has been filed against Antigenics Inc. (AGEN), certain of its officers and directors by stockholders who purchased the company's common stock between September 3, 2003 and March 23, 2006. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock. A class action has been filed against electrical utility holding company FirstEnergy Corporation (NYSE: FE) and certain of its officers and directors by stockholders who purchased the company's common stock between April 24, 2002, and August 5, 2003. A class action has been filed against American International Group, Inc. (AIG) : Shelf-Space Funds (AIG), certain of its officers and directors by stockholders who purchased the company's common stock between June 30, 2000 and June 8, 2005. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock. The parties have reached a tentative $2.3 million settlement of a class action filed against dietary supplements maker PharmaPrint, Inc. (Pink Sheets: PPRT, formerly OTCBB: PPRT) and certain of its officers and directors by stockholders who purchased the company's common stock between July 1 and November 15, 1999. Stericycle, Inc., the leading provider in North America of medical waste management and compliance services for the healthcare community, announced today that it has entered into a preliminary settlement to resolve a pending class action lawsuit by the minority shareholders of Stericycle's publicly traded majority-owned subsidiary, 3CI Complete Compliance Corporation, and by 3CI. The settlement remains subject to court approval. The parties have reached a tentative settlement in a class action filed against child-resistant packaging manufacturer Kerr Group, Inc. by stockholders who purchased the company's class B cumulative convertible preferred series D stock between July 1, 1997, and December 31, 1997. Persons who wish to take part in the settlement must submit a proof of claim form postmarked no later than August 22, 2004. |
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