SEATTLE, April 18, 2001 (PRIMEZONE) -- A class action has been commenced in the United States District Court for the Western District of Washington on behalf of all purchasers of Amazon.com, Inc. (Nasdaq:AMZN) ("Amazon.com") common stock during the period from February 2, 2000 through March 9, 2001(the "Class Period").
The complaint charges Amazon and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The complaint alleges that Amazon.com's cash position has been an important component to the Company's valuation in the market. On February 2, 2000, Amazon.com announced favorable results for the fourth quarter of 1999, and also announced partnerships that the Company maintained would represent $500 million in revenue over the next five years. In the wake of this good news, on February 16, 2000, Amazon.com completed an offering of Euro 690 million in 6.875% convertible subordinated notes due 2010, pursuant to a Prospectus dated February 11, 2000. This prospectus provided that Amazon.com would receive $663 million in net proceeds. In fact, but concealed from the public, the payments from the partnerships would be in stock, not cash and the actual receipt of this money was uncertain at best. Thus, the agreements did not satisfy Amazon.com's pressing need for increased cash balances. Since the beginning of the Class Period, Amazon.com's cash concerns have only intensified and the aforementioned agreements have provided little in the way of cash. Then, on March 9, 2001, it was revealed Amazon.com's CEO was being investigated for selling 800,000 shares of Amazon.com prior to a negative report by an analyst. Amazon.com's stock has now dropped to below $12 per share, some 86% below the Class Period high of $85-15/16.
Plaintiffs seek to recover damages on behalf of all purchasers of Amazon.com common stock during the Class Period (the "Class"). The plaintiff is represented by Hagens Berman LLP, which has concentrated its practice in the field of class action and multi-plaintiff litigation, representing plaintiffs in numerous securities and investment fraud actions throughout the country. Hagens Berman LLP has been appointed lead or co-lead counsel on behalf of defrauded investors in numerous complex financial cases, and has been responsible for many large recoveries.
If you are a member of the Class described above, you may, no later than 60 days from today, move the Court to serve as lead plaintiff of the Class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiffs' counsel, Steve W. Berman or Karl P. Barth at Hagens Berman, LLP at (206) 623-7292 or toll-free at (888) 381-2889 or via e-mail at Karl@Hagens-Berman.com.
More information on this and other class actions may be found on the Class Action Newsline at www.primezone.com/ca