NEW YORK, May 3, 2002 (PRIMEZONE) -- Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com) today announced that it 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 Internet Capital Group, Inc. ("Internet Capital" or the "Company") (Nasdaq:ICGE) in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. The case is on behalf of investors who purchased the common stock of Internet Capital during the period between August 30, 1999 and November 8, 2000, inclusive ("the Class Period"). It was filed in the United States District Court for the Southern District of New York under Index Number 02-CV-3372.
It is alleged that during the Class Period, defendants' initiation of coverage and its rating and reports on Internet Capital were not based on independent, objective analyses but instead were biased and tilted in the Company's favor to enable Merrill Lynch to maintain and enhance its lucrative investment banking business relationship with this important client. The Complaint charges that defendants' positive public statements about Internet Capital were inconsistent with their own contemporaneous, private negative assessments. For example, while repeatedly reiterating an Accumulate/Buy (2-1) rating, defendants internally labeled Internet Capital stock "a disaster." Furthermore, defendants concealed from the public that although Merrill Lynch technically had five ratings, it had a policy and practice of issuing only its top three ratings. During the relevant time herein, defendant never issued a reduce or sell rating on any Internet company. Indeed, during the Class Period, even as market conditions changed, defendants repeatedly reissued an Accumulate/Buy rating on Internet Capital, thus reassuring investors about their continued confidence in the Company.
As a result of defendants' false and misleading statements, the market price of Internet Capital common stock was artificially inflated 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." Since then the Attorney General has reportedly reached an interim settlement with Merrill Lynch requiring it to make more meaningful disclosures about its current, past, and future 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. Merrill Lynch's ratings on Internet Capital were among those challenged by the Attorney General.
The Securities and Exchange Commission and other states have now announced their own investigations against Merrill Lynch.
If you purchased the common stock of Internet Capital during the Class Period, you have until June 25, 2002 to ask the Court to appoint you as one of the lead plaintiffs for the Class. In order 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 number.
The Pomerantz firm, which has offices in New York and Chicago, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz firm pioneered the field of securities class actions. Today, more than 50 years later, the Pomerantz firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca