PHILADELPHIA, May 24, 2001 (PRIMEZONE) -- The law firm of Berger & Montague, P.C. (http://www.investorprotect.com), filed a class action complaint in the United States Southern District of New York on behalf of all persons or entities who purchased NetZero, Inc. (Nasdaq:NZRO) common stock pursuant or traceable to a prospectus dated September 23, 1999 during the period from September 24, 1999 through and including September 28, 2000.
The Complaint alleges violations of Sections 11, 12(a) and 15 of the Securities Act of 1933. On September 24, 1999 NetZero commenced an initial public offering of 10 million of its shares of common stock at an offering price of $16 per share (the "NetZero IPO"). In connection therewith NetZero filed a registration statement, which incorporated a prospectus (the "Prospectus"), with the SEC. The complaint charges that the Prospectus was materially false and misleading because it failed to disclose, among other things, that: (i) Goldman Sachs, Robertson Stephens and Salomon had solicited and received excessive and undisclosed commissions from certain investors in exchange for which Goldman Sachs, Robertson Stephens and Salomon allocated to those investors material portions of the restricted number of NetZero shares issued in connection with the NetZero IPO; (ii) Goldman Sachs, Robertson Stephens and Salomon had entered into agreements with customers whereby Goldman Sachs, Robertson Stephens and Salomon agreed to allocate NetZero shares to certain customers in the NetZero IPO in exchange for which the customers agreed to purchase additional NetZero 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.
If you purchased NetZero common stock during the period from September 24, 1999 through September 28, 2000, inclusive, you may, no later than June 22, 2001, move to be appointed lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery, is not, however, affected by the decision whether or not to serve as a lead plaintiff.
The law firm of Berger & Montague, P.C. has over 50 attorneys, all of whom represent plaintiffs in complex litigation. The Berger firm has extensive experience representing plaintiffs in class action securities litigation and has played lead roles in major cases over the past 25 years which have resulted in recoveries of several billion dollars to investors. The firm is currently representing investors as lead counsel in actions against Rite Aid, Sotheby's, Waste Management, Inc., Sunbeam, Boston Chicken and IKON Office Solutions, Inc. The standing of Berger & Montague, P.C. in successfully conducting major securities and antitrust litigation has been recognized by numerous courts. For example:
"Class counsel did a remarkable job in representing the class interests." In Re: IKON Offices Solutions Securities Litigation. Civil Action No. 98-4286(E.D.Pa.) (partial settlement for $111 million approved May, 2000).
"...[Y]ou have acted the way lawyers at their best ought to act. And I have had a lot of cases ... in 15 years now as a judge and I cannot recall a significant case where I felt people were better represented than they are here... I would say this has been the best representation that I have seen." In Re Waste Management, Inc. Securities Litigation, Civil Action No. 97-C 7709 (N.D. Ill.) (settled in 1999 for $220 million).
If you purchased NetZero common stock, or have any questions concerning this notice or your rights with respect to this matter, you may contact:
Todd Collins, Esquire Douglas M. Risen, Esquire Kimberly A. Walker, Investor Relations Manager Berger & Montague, P.C. 1622 Locust Street Philadelphia, PA 19103 Phone: 888-891-2289 or 215-875-3000 Fax: 215-875-5715 Website: http://www.investorprotect.com e-mail: InvestorProtect@bm.net
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca