NEW YORK, May 16, 2002 (PRIMEZONE) -- Pomerantz Haudek Block Grossman & Gross (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 24/7 Real Media, Inc. ("24/7" or the "Company") (Nasdaq:TFSM). The case was filed on behalf of investors who purchased the common stock of 24/7 during the period from February 18, 2000 through November 9, 2000, inclusive (the "Class Period").
The Complaint alleges that during the Class Period, defendants' research reports and ratings on 24/7 were neither independent nor objective, but instead were biased and improperly influenced by Merrill Lynch's lucrative investment banking business relationships with this important client. In order to maintain and enhance Merrill Lynch's investment banking relationships with 24/7, defendants issued positive ratings on the Company which were materially misleading as they were inconsistent with their own contemporaneous, private adverse assessments of 24/7. For example, defendants were repeatedly issuing a short and long-term accumulate rating on 24/7 despite Blodget's internal description of 24/7 as a "piece of shi(-)."
As a result of defendants' false and misleading statements, the market price of 24/7 common stock was artificially inflated, maintained or stabilized during the Class Period.
On April 8, 2002, New York State Attorney General Eliot Spitzer 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 24/7 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 24/7 during the Class Period, you have until June 25, 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 to Andrew G. Tolan, Esq. of Pomerantz Haudek Block Grossman & Gross LLP, 888-476-6529 ((888) 4-POMLAW) or agtolan@pomlaw.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca