Class Action Lawsuits Filed Against Major Corporations on Behalf of Shareholders Claim Financial Losses Tied to Billing and Other Technical Problems : LUSENET : Grassroots Information Coordination Center (GICC) : One Thread

Class Action Lawsuits Filed Against Major Corporations Claim Financial Losses Tied to Billing and Other Technical Problems

Note Independent Energy Holdings and ICG Below:

Press Release Spector, Roseman, & Kodroff, P.C. Announces Class Periods for Securities Class Action Lawsuits

PHILADELPHIA--(BUSINESS WIRE)--Oct. 7, 2000--Spector, Roseman, & Kodroff has filed Class Action lawsuits against or asked to investigate the following companies at the request of shareholders who purchased securities during the Class Periods stated below. Investors who purchased any of the following securities during the stated Class Periods are invited to contact us to learn more about these lawsuits. If you wish to discuss these actions or have any questions concerning this notice or your rights or interests, please contact plaintiffs' counsel Robert M. Roseman toll-free at 1-888-844-5862 or via E-mail at

INDEPENDENT ENERGY HOLDINGS PLC (NASDAQ: INYYQ - news) 2/12/00-9/8/00 - - The Complaint alleges that information issued by the company regarding its financial and operating condition. Specifically, the complaint alleges that the defendants misrepresented the extent of the company's billing problems with its customers, and as a result, its financial results for 6/30/00 would fall below analysts' expectations.

ICG COMMUNICATIONS (NASDAQ:ICGX - news) 12/20/99-9/18/00 - - The complaint alleges that the company issued false and misleading statements by having failing to disclose that the company was experiencing significant customer-servicing issues which arose out of technical problems and, as a result, certain customers were reducing their commitment to the company which would reduce the company's earnings. Upon the announcement of lower EBITDA and the customer issues, the price of the stock dropped significantly.

PRICELINE.COM (NASDAQ:PCLN - news) 7/24/00-9/23/00 - - The complaint charges and certain of its directors and executive officers with violations of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The complaint alleges that the defendants issued false and misleading information which artificially inflated the price of the stock during the class period.

The complaint further alleges that, at the commencement of the Class Period, on July 24, 2000, defendants stated that (i) the Company was ``rounding the final turn and on the homestretch towards profitability,'' (ii) ``our loyalty among existing customers is accelerating.'' and (iii) the Priceline bidding model ``has tremendous staying power.''

The complaint alleges that defendants knew or recklessly disregarded that the company was not ``rounding the final turn and on the homestretch towards profitability,'' that its business model did not have ``tremendous staying power,'' and that the Company was losing customers as increasing numbers of people became dissatisfied with Priceline's rigid bidding process and the company's failure to respond to their complaints of poor service and confusing terms.

CDNOW (NASDAQ:CDNW - news) 1/28/00-3/28/00 {& 7/26/00 until 8/22/00close of the tender offer for CDnow by Bertelsmann, Inc.(``Bertelsmann'') }. The class action Complaint charges that CDnow and certain of its officers and directors violated the federal securities laws. Specifically, the Complaint alleges that on July 13, 1999, CDnow (an online retailer of pre-recorded music), Time Warner and Sony Corporation of America announced that they had entered into a merger agreement on the previous day, pursuant to which they would combine the businesses of CDnow and Columbia House, a club-based retailer of music and videos that is equally owned by Sony and Time Warner. The complaint further alleges defendants failed to reveal that, on or before January 28, 2000, CDnow's outside auditor advised CDnow management of its ``substantial doubt about (CDnow's) ability to continue as a going concern, that this ''going concern`` qualification would impede the merger with Columbia House and that CDnow could not survive without a merger partner. In its July 26, 2000 Form 14D-9, in connection with the tender offer for CDnow made by Bertelsmann, CDnow also failed to disclose the same material information.

MERCATOR SOFTWARE (NASDAQ: MCTR - news) 4/20/00 - 8/21/00: The complaint charges that Mercator improperly overstated its gross profits and net income during the Class Period, while understating its operating expenses. As a result, the company restated its results for first quarter of 2000 and adjusted previously reported results for the second quarter.

The news became public after stock markets had closed on August 21, when Mercator disclosed that it restated and lowered first- and second-quarter 2000 earnings to account for approximately $2.4 million of under reported expenses. The company also announced that it had accepted the resignation of its chief financial offer and fired its vice president of finance. In addition, Mercator said it retained an outside auditor to recommend ``enhancements'' to its financial infrastructure and internal controls.

Spector, Roseman, & Kodroff, P.C., located in Philadelphia, Pennsylvania and San Diego, California, concentrates its practice in complex litigation including actions dealing with securities laws, antitrust, contract and commercial claims. The firm is active in major litigation pending in federal and state courts throughout the United States. The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm as lead counsel in numerous major class actions involving violations of the federal securities laws and the federal antitrust laws. As a result of the efforts of the firm, and its members, hundreds of millions of dollars have been recovered on behalf of thousands of defrauded shareholders and companies. For more detailed information about the firm please visit our website at

The Firm is currently representing investors as lead counsel in actions against S3, Inc., Compaq Computer Corp., Dreyfus Aggressive Growth Fund, Mitcham Corporation, Capstead Mortgage and Unisys Corporation. The firm is currently representing businesses as lead counsel in the following antitrust actions: In re Flat Glass Antitrust Litigation; In re Corrugated Paper Antitrust Litigation.


-- Carl Jenkins (, October 08, 2000


The trial lawyers were very disappointed when they were unable to sue everybody in sight - with deep pockets, that is - over y2k failures.

But, I guess they found a few.

-- Billiver (, October 08, 2000.

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