BALA CYNWYD, Pa., August 2, 2001 (PRIMEZONE) -- Schiffrin & Barroway, LLP announced today that it recently filed lawsuits against Value America, Inc., Aether Systems, Inc., Agency.com, Ltd. and Rhythms Netconnections, Inc. for violations of the federal securities laws.
If you purchased the securities of any of the companies listed below during the class period, you may be a member of the class and have until the date specified to move the court to become the lead plaintiff. For more information on a particular lawsuit and to view the complaint, you may visit our Website at www.sbclasslaw.com. To learn more about your rights and interests in these cases and your ability to potentially recoup your losses, please contact Schiffrin & Barroway directly at 888-299-7706 (toll free) or 610-667-7706, fax number 610-667-7056 or by e-mail at info@sbclasslaw.com
VALUE AMERICA, INC. (Nasdaq:VUSQE) (Class Period: 4/08/99 - 12/06/00). On or about April 8, 1999, Value America commenced an initial public offering of 5,500,000 of its shares of common stock at an offering price of $23.00 per share (the "Value America IPO"). In connection therewith, Value America filed a registration statement, which incorporated a prospectus (the "Prospectus"), with the SEC. The complaint alleges that the Prospectus was materially false and misleading because it failed to disclose, among other things, that: (i) BancBoston Robertson Stephens ("Robertson Stephens") had solicited and received excessive and undisclosed commissions from certain investors in exchange for which Robertson Stephens allocated to those investors material portions of the restricted number of Value America shares issued in connection with the Value America IPO; and (ii) Robertson Stephens had entered into agreements with customers whereby Robertson Stephens agreed to allocate Value America shares to those customers in the Value America IPO in exchange for which the customers agreed to purchase additional Value America shares in the aftermarket at pre-determined prices. The complaint was filed in the U.S. District Court for the Southern District of New York. The lead plaintiff motion must be filed no later than August 20, 2001.
AETHER SYSTEMS, INC. (Nasdaq:AETH) (Class Period: 10/20/99 - 12/06/00). On or about October 20, 1999, Aether Systems commenced an initial public offering of 6,000,000 of its shares of common stock at an offering price of $16 per share (the "Aether Systems IPO"). In connection therewith, Aether Systems filed a registration statement, which incorporated a prospectus (the "Prospectus"), with the SEC. The complaint alleges that the Prospectus was materially false and misleading because it failed to disclose, among other things, that: (i) Merrill Lynch, Pierce, Fenner & Smith Incorporated ("Merrill Lynch"), BancBoston Robertson Stephens, Inc. ("Robertson Stephens") and Morgan Stanley & Co. Incorporated ("Morgan Stanley") had solicited and received excessive and undisclosed commissions from certain investors in exchange for which Merrill Lynch, Robertson Stephens and Morgan Stanley allocated to those investors material portions of the restricted number of Aether Systems shares issued in connection with the Aether Systems IPO; and (ii) Merrill Lynch, Robertson Stephens and Morgan Stanley had entered into agreements with customers whereby Merrill Lynch, Robertson Stephens and Morgan Stanley agreed to allocate Aether Systems shares to those customers in the Aether Systems IPO in exchange for which the customers agreed to purchase additional Aether Systems 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. The complaint was filed in the U.S. District Court for the Southern District of New York. The lead plaintiff motion must be filed no later than August 20, 2001.
AGENCY.COM, LTD. (Nasdaq:ACOM) (Class Period: 12/08/99 - 12/06/00). On or about December 8, 1999, Agency.com commenced an initial public offering of 5,900,000 of its shares of common stock at an offering price of $26 per share (the "Agency.com IPO". In connection therewith, Agency.com filed a registration statement, which incorporated a prospectus (the "Prospectus"), with the SEC. The complaint alleges that the Prospectus was materially false and misleading because it failed to disclose, among other things, that: (i) Goldman Sachs and Smith Barney had solicited and received excessive and undisclosed commissions from certain investors in exchange for which Goldman Sachs and Smith Barney allocated to those investors material portions of the restricted number of Agency.com shares issued in connection with the Agency.com IPO; and (ii) Goldman Sachs and Smith Barney had entered into agreements with customers whereby Goldman Sachs and Smith Barney agreed to allocate Agency.com shares to those customers in the Agency.com IPO in exchange for which the customers agreed to purchase additional Agency.com 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. The complaint was filed in the U.S. District Court for the Southern District of New York. The lead plaintiff motion must be filed no later than August 27, 2001.
RHYTHMS NETCONNECTIONS, INC. (OTCBB:RTHM) (Class Period: 4/06/99 - 12/06/00). On or about April 6, 1999, Rhythms commenced an initial public offering of 9,375,000 of its shares of common stock at an offering price of $21.00 per share (the "Rhythms IPO"). In connection therewith, Rhythms filed a registration statement, which incorporated a prospectus (the "Prospectus"), with the SEC. The complaint alleges that the Prospectus was materially false and misleading because it failed to disclose, among other things, that (i) the Underwriter Defendants (Merrill Lynch, Smith Barney and Robertson Stephens) had solicited and received excessive and undisclosed commissions from certain investors in exchange for which the Underwriter Defendants allocated to those investors material portions of the restricted number of Rhythms shares issued in connection with the Rhythms IPO; and (ii) the Underwriter Defendants had entered into agreements with customers whereby the Underwriter Defendants agreed to allocate Rhythms shares to those customers in the Rhythms IPO in exchange for which the customers agreed to purchase additional Rhythms shares in the aftermarket at pre-determined prices. The complaint was filed in the U.S. District Court for the Southern District of New York. The lead plaintiff motion must be filed no later than August 27, 2001.
Schiffrin & Barroway, LLP has prosecuted shareholder class actions for over fourteen years and has recovered more than $1 billion for investors.
If you are a shareholder in any of the companies listed above and would like to be a lead plaintiff in one of these securities class actions, please contact Schiffrin & Barroway at 888-299-7706.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca