LITTLE ROCK, Ark., Dec. 7, 2001 (PRIMEZONE) -- The Law Firm of Cauley Geller Bowman & Coates, LLP announced today that a class action has been filed in the United States District Court for the Central District of California on behalf of purchasers of GenesisIntermedia Inc. ("GenesisIntermedia" or the "Company") (Nasdaq:GENI) publicly traded securities during the period between December 21, 1999 and September 25, 2001, inclusive (the "Class Period"). A copy of the complaint filed in this action is available from the Court, or can be viewed on the firm's website at http://www.classlawyer.com/pr/genesisintermedia.pdf.
The complaint charges GenesisIntermedia and certain of its officers, directors and a secretly paid financial commentator with violations of the Securities Exchange Act of 1934. The complaint alleges that in December 1999, the beginning of the Class Period, defendants plotted and unleashed their scheme to inflate the price of GenesisIntermedia shares and gave shares worth more than $3 million to a financial commentator who helped send the stock soaring after he agreed to issue allegedly false, positive recommendations for it on CNN, CNBC and Bloomberg Television. However, the complaint alleges defendants concealed the payment of 216,000 shares to the commentator, Courtney Smith, in order to induce the purchase of GenesisIntermedia shares and raise tens of millions of dollars via multiple private securities offerings. As a result of defendants' false statements, GenesisIntermedia's stock price traded at inflated levels during the Class Period, increasing to as high as $25 in June 2001.
Then after the close of the market on September 25, 2001, GenesisIntermedia's shares were halted pending the resolution of an investigation. GenesisIntermedia shares remain halted and are in essence, worthless. However, just hours before the announcement of the investigation and "halt," defendant El-Batrawi sold over $1.7 million dollars worth of his own shares.
If you bought the securities of GenesisIntermedia between December 21, 1999 and September 25, 2001 inclusive, and you wish to serve as lead plaintiff, you must move the Court no later than December 17, 2001. If you are a member of this class, you can join this class action online at http://www.classlawyer.com/sign_up.html. Any member of the purported class may move the Court to serve as lead plaintiff through Cauley Geller Bowman and Coates, LLP or other counsel of their choice, or may choose to do nothing and remain an absent class member.
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 investors 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 are encouraged to call or e-mail the Firm or visit the Firm's website at www.classlawyer.com.
CAULEY GELLER BOWMAN & COATES, LLP Investor Relations Department: Jackie Addison, Sue Null or Charlie Gastineau P.O. Box 25438 Little Rock, AR 72221-5438 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