NEW YORK, May 18, 2005 (PRIMEZONE) -- Murray, Frank & Sailer LLP has filed a class action lawsuit on behalf of shareholders who purchased or otherwise acquired the securities of FindWhat.com, Inc. ("FindWhat" or the "Company") (Nasdaq:FWHT) between January 5, 2004 and May 4, 2005, inclusive (the "Class Period"), seeking to pursue remedies under the Securities Exchange Act of 1934.
The Complaint charges FindWhat and certain of the Company's executive officers with violations of federal securities laws. Plaintiff claims defendants' omissions and material misrepresentations during the Class Period artificially inflated the Company's stock price, inflicting damages on investors. FindWhat offers marketing and services to help businesses develop and retain customers. The complaint alleges that during the Class Period the Company violated the Securities and Exchange Act of 1934 by failing to disclose and misrepresenting the following: (a) the Company's financial results issued during the Class Period were materially false and misleading; (b) the Company had failed to timely take an impairment charge against "goodwill" attributable to the Company's acquisition of Miva Corporation; (c) because defendants consciously disregarded the obvious need to enhance the Company's internal controls, the Company lacked adequate internal controls, which allowed for the Company's accounting to be manipulated and resulted in false financial results; and (d) as a result, the Company's projections associated with its financial results were materially inflated.
On May 2, 2005, FindWhat announced that it was in disagreement with Ernst & Young about the need to record an adjustment in its 2004 financial statements to recognize an impairment of goodwill, and that Ernst and Young LLP was resigning. On this news, the Company's shares fell 26%, to close at $5.71 per share on May 3, 2005. On May 5, 2005, the Company disclosed its Q1 2005 results and announced financial projections for future quarters. The Company announced Q1 2005 results that were below Wall Street expectations, slashed its FY 2005 revenue guidance from $250-$270 million to $175-$200 million and retracted its previous EPS and EBITDA guidance altogether. In addition, the Company announced that its Chief Financial Officer had resigned. On this news, shares of FindWhat plummeted another 20% on May 5, 2005, to close at $4.83 per share.
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 FindWhat securities on any world exchange between January 5, 2004 and May 4, 2005, and sustained damages, you may, no later than July 5, 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, Aaron D. Patton or Christopher S. Hinton of Murray, Frank & Sailer LLP.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.