NEW YORK, May 15, 2002 (PRIMEZONE) -- A securities class action lawsuit was filed against the Merrill Lynch Internet Strategies Fund, Inc. ("Internet Strategies Fund" or the "Company") ("MANTX"; "MBNTX"; "MCNTX"; "MDNTX"; "MANTXEMP"; "MANTXFEE"), Merrill Lynch & Co., Inc. ("Merrill Lynch"), Merrill Lynch Funds Distributor ("MLFD"), Henry Blodget ("Blodget"), Paul G. Meeks ("Meeks") and several directors of the Internet Strategies Fund, on behalf of all persons or entities who purchased shares of the Internet Strategies Fund during the period from March 14, 2000 through October 15, 2001, inclusive (the "Class Period"). On October 15, 2001, the Internet Strategies Fund merged with The Merrill Lynch Global Technology Fund ("MAGTX"; "MBGTX"; "MCGTX"; "MDGTX"). A copy of the complaint is available from the Court or from Abbey Gardy, LLP. Please contact us by phone at 800-889-3701 or by email at jhaas@abbeygardy.com.
The case was filed in the United States District Court for the Southern District of New York. The complaint charges defendants with violations of Sections 11, 12 and 15 of the Securities Act of 1933. The complaint alleges, among other things, that throughout the Class Period defendants knowingly or recklessly disseminated materially false and misleading statements regarding, among other things, the risk factors and investment strategies of the Internet Strategies Fund.
Specifically, the complaint alleges that the defendants engaged in a scheme that was intended to use Blodget's strong reputation and bullish ratings on Internet stocks to market the Internet Strategies Fund to unsuspecting investors. In fact, as a result of defendants' scheme, over one billion dollars was invested in the Internet Strategies Fund by investors. The complaint alleges that defendants failed to disclose: (1) that at the same time Blodget was recommending Internet stocks he held unpublished negative views regarding those same stocks; (2) that considerable conflicts of interest existed within Merrill Lynch which compromised the objectivity of Merrill Lynch Internet analysts; and (3) that Blodget's favorable ratings on Internet companies were influenced by Merrill Lynch's desire to generate investment banking fees.
The complaint further alleges that the Internet Strategies Fund's Registration Statement/Prospectus was materially false and misleading because, among other things, it (1) omitted to state that the Internet Strategies Fund was being marketed at a time when Merrill Lynch Internet analysts published strong investment ratings on all Internet companies followed by Merrill Lynch even though those analysts, including Blodget, held negative personal views on those same stocks; (2) omitted to state that Blodget and the Internet Group published strong ratings on Internet stocks in order to secure investment banking business; and (3) omitted to state that substantial conflicts of interest existed within Merrill Lynch that compromised the objectivity of Blodget and the Internet Group.
Plaintiff seeks to recover damages on behalf of all those who purchased or otherwise acquired shares of the Internet Strategies Fund during the Class Period. If you purchased or otherwise acquired shares of the Internet Strategies Fund during the Class Period, and either lost money on the transaction or still hold shares of the Merrill Lynch Global Technology Fund pursuant to the merger of the Internet Strategies Fund and the Merrill Lynch Global Technology Fund, you may wish to join in the action to serve as lead plaintiff. If you purchased shares in the Internet Strategies Fund during the Class Period, you may, no later than June 25, 2002, request that the Court appoint you as lead plaintiff.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiffs." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Abbey Gardy, LLP, or other counsel of your choice, to serve as your counsel in this action.
Abbey Gardy, LLP has been retained as one of the law firms to represent the Class. The attorneys at Abbey Gardy, LLP have extensive experience in securities class action cases, and have played lead roles in major cases resulting in the recovery of hundreds of millions of dollars to investors. If you would like to discuss this action or if you have any questions concerning this Notice or your rights as a potential class member or lead plaintiff, you may contact Nancy Kaboolian, Esq. or Jennifer Haas of Abbey Gardy, LLP at (800) 889-3701 or email jhaas@abbeygardy.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca