NEW YORK, May 7, 2002 (PRIMEZONE) -- Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com) has filed a class action charging Merrill Lynch & Co., Inc. ("Merrill Lynch") (NYSE:MER) and its former Internet research analyst Henry M. Blodget ("Blodget") with issuing false and misleading analyst reports about At Home Corporation, doing business as Excite@Home ("Excite" or the "Company") (OTCBB:ATHMQ). The case was filed on behalf of investors who purchased the common stock of Excite during the period from August 18, 1999 through June 20, 2001, inclusive (the "Class Period").
The case (Index Number 02-CV-3042), filed in the United States District Court for the Southern District of New York, United States Courthouse, 40 Centre Street, New York, NY 10007, has been assigned to the Honorable Richard M. Berman.
The Complaint alleges that during the Class Period, defendants' research reports and ratings on Excite were neither independent not objective, but instead were biased and improperly influenced by Merrill Lynch's lucrative investment banking business relationships with this important client. Also, unbeknownst to the investing public, Merrill Lynch's research analysts' compensation was tied to, in part, on their contributions to the firm's investment banking business. Plaintiff further charges that Merrill Lynch issued positive ratings and coverage about Excite, while concealing defendants' contemporaneous, private negative assessments about this client. For example, defendants repeatedly issued an Accumulate/Buy rating on Excite despite Blodget's internal conclusion that this stock was a "piece of crap," had a "flat" outlook and was without any "real catalysts" for improvement. Similarly, when defendants were publicly rating Excite an Accumulate/Accumulate, Blodget was privately telling his colleagues that the Company was "falling apart" and he "doesn't think there's any reason to buy more." Plaintiff additionally asserts that defendants failed to disclose that although Merrill Lynch technically had five ratings, it had a policy and practice of issuing only its top three ratings (buy, accumulate, and neutral) to Internet companies. During the relevant time herein, defendants never issued its two lowest ratings -- reduce or sell -- on such companies, including Excite.
As a result of defendants' false and misleading statements, the market price of Excite common stock was artificially inflated, maintained or stabilized during the Class Period.
On April 8, 2002, New York State Attorney General Eliot Spitzer (the "Attorney General") announced that a ten-month investigation had revealed that Merrill Lynch's "supposedly independent and objective investment advice was tainted and biased by the desire to aid Merrill Lynch's investment banking business." Merrill Lynch's ratings on Excite were among those challenged by the Attorney General. Since then, the Attorney General has reportedly reached an interim settlement with Merrill Lynch requiring it to make more meaningful disclosures of its investment banking relationships with companies on which it issues research reports, but larger issues relating to possible payment of restitution and even criminal charges are still unresolved. The Securities and Exchange Commission and certain states have now announced their own investigations against Merrill Lynch.
If you purchased the common stock of Excite during the Class Period, you have until June 21, 2002 to ask the Court to appoint you as lead plaintiff for the Class. To serve as lead plaintiff, you must meet certain legal requirements. If you wish to review a copy of the Complaint, to discuss this action or have any questions, please contact Andrew G. Tolan, Esq. of the Pomerantz firm at 888-476-6529 (or (888) 4-POMLAW), toll free, or at agtolan@pomlaw.com by e-mail. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
The Pomerantz firm, which has offices in New York and Chicago, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz firm pioneered the field of securities class actions. Today, more than 50 years later, the Pomerantz firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca