BOCA RATON, Fla., April 4, 2001 (PRIMEZONE) -- The Law Firm of Cauley Geller Bowman & Coates, LLP announced today that it has filed a class action in the United States District Court for the Northern District of California on behalf of all individuals and institutional investors that purchased the common stock of Ventro Corporation ("Ventro" or the "Company") (Nasdaq:VNTR) between February 15, 2000 and December 6, 2000, inclusive (the "Class Period").
The complaint charges that the Company and certain of its officers and directors violated the federal securities laws by providing materially false and misleading information about the Company's financial condition and future growth potential, and as a result of these false and misleading statements the Company's stock traded at artificially inflated prices during the class period. Specifically, during the Class Period, Ventro built and operated platforms for vertical business-to-business ("B2B") e-commerce marketplace companies. The complaint alleges that by December 1999, defendants knew that Ventro's existing business model did not work. Moreover, by the beginning of the Class Period it was evident to defendants that Ventro did not possess the technology to successfully compete as a marketplace. Defendants knew this would severely impair Ventro's future revenue growth. However, defendants wanted to raise additional money through debt offerings before the bottom fell out of Ventro's stock price. Thus, defendants continued to make positive but false statements about Ventro's business and future revenues. As a result, Ventro's stock traded as high as $243-1/2 per share during the Class Period. Then, on Dec. 6, 2000, Ventro announced a restructuring in which it closed down two out of three of its main B2B marketplaces. In early 2001, it was revealed that Ventro's CEO and the other defendants had realized by December 1999 that Ventro's business model of independent marketplaces didn't make sense and it was revealed that even Ventro's partners were not satisfied with Ventro's technology for operating the marketplaces. By this time Ventro's stock had declined to less than $2 per share, inflicting billions of dollars of damage on plaintiff and the Class. Defendants' misconduct has wiped out over $4 billion in market capitalization as Ventro stock has fallen 99% from its Class Period high of over $243 per share as the truth about Ventro, its operations and prospects began to reach the market.
Cauley Geller Bowman & Coates, LLP has substantial experience representing investors in securities fraud class action lawsuits such as this. The firm has offices in Florida, Arkansas and California, but represents shareholders from throughout the nation. If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you must meet certain requirements and take appropriate action by May 29, 2001. You are encouraged to call or e-mail the Firm or visit the Firm's website at www.classlawyer.com.
CAULEY GELLER BOWMAN & COATES, LLP Sue Null, Charlie Gastineau or Jackie Addison Toll Free: 1-888-551-9944 E-mail: info@classlawyer.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca