NEW YORK, Feb. 25, 2005 (PRIMEZONE) -- Murray, Frank & Sailer LLP announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of purchasers of the securities of eSpeed, Inc. ("eSpeed" or the "Company") (NASDAQ: ESPD) between August 12, 2003 and July 1, 2004, inclusive (the "Class Period"). The case number is 05CV2310.
The Complaint charges eSpeed, Cantor Fitzgerald Securities, Cantor Fitzgerald L.P., CF Group Management, Inc. and certain of eSpeed's executive officers with violations of federal securities laws. Plaintiff claims defendants' omissions and material misrepresentations concerning eSpeed's operations and performance artificially inflated the Company's stock price, inflicting damages on investors. eSpeed develops and deploys interactive vertical electronic marketplaces and related trading technology that offers traders access to liquid, efficient and neutral financial markets. The Complaint alleges that during the Class Period defendants touted eSpeed as an unmitigated success story, but knowingly or recklessly misrepresented and failed to disclose the following material adverse facts: (i) eSpeed was not successfully competing with ICAP Plc - eSpeed's principal competitor; (ii) eSpeed's market share was declining; (iii) ICAP and its BrokerTec division were taking market share from eSpeed; and (iv) eSpeed's pricing model was driving customers to its principal competitor.
On July 1, 2004, defendants disclosed that eSpeed's revenue, earnings and market share were decreasing, its business plan was not working, it was being forced to develop a new business plan and pricing structure, and its competitive efforts with respect to ICAP were not successful. In two trading days following the announcement, eSpeed shares dropped more than $6.00 per share, on volume of more than nine million shares.
Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.
If you purchased or otherwise acquired eSpeed securities between August 12, 2003 and July 1, 2004, and sustained damages, you may, no later than April 22, 2005, move the Court to serve as lead plaintiff. Shareholders outside the United States may also join the action, regardless of which exchange was used to purchase the securities. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this class action as lead plaintiff online at http://www.murrayfrank.com/CM/NewCases/NewCases.asp. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff's counsel Eric J. Belfi or Aaron D. Patton of Murray, Frank & Sailer LLP.