ATLANTA, Jan. 16, 2003 (PRIMEZONE) -- Chitwood & Harley announces that a class action lawsuit is pending in the United States District Court for the Northern District of Texas, on behalf of purchasers of the common stock of Hotels.com (Nasdaq:ROOM), between October 23, 2002 and January 6, 2003, inclusive ("Class Period"). The civil action number in the first filed case is 03-CV-00069. If you wish to serve as lead plaintiff, you must file a motion for appointment no later than March 11, 2003.
Chitwood & Harley is currently investigating these claims. If you wish to discuss this action or have any questions concerning this notice or your rights with respect to this matter, you may contact Jennifer Morris at 1-888-873-3999 (toll-free) or by e-mail at jlm@classlaw.com. You may choose to do nothing and you may retain counsel of your own choice.
The complaint charges Hotels.com and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Hotels.com is an online consolidator of hotel accommodations, contracting with hotels in advance for volume purchases and guaranteed availability of hotel rooms at wholesale prices which are then sold to customers. On October 23, 2002, the Company's president said the Company was an unqualified success and projected phenomenal growth for the fourth quarter, including Q4 '02 revenue of $283-$289 million and cash earnings per share of $0.46 to $0.47. The October 23 release sent the Company's shares soaring to above $60 per share, eventually hitting a Class Period high of $75 on December 2, 2002. Then on January 6, 2003, the defendants announced that the Company would fall materially short of hitting its forecasted projections. On this news, the Company's shares dropped to $44 from $59, a market cap loss of more than $855 million. The complaint details $42 million in insider trading during the Class Period.
In order to serve as lead plaintiff, you must meet certain legal requirements which Chitwood & Harley would be happy to discuss with you. Chitwood & Harley is a class action law firm that represents victims of securities fraud and corporate mismanagement. Chitwood & Harley has been appointed lead counsel in major actions throughout the United States and has received praise for results it achieved as lead or co-lead counsel. Recently, the federal judge commented favorably on counsel's performance stating: "Class members were well served by experienced attorneys who, through considerable time and effort, obtained a significant recovery for their clients," and, "(a)s the Court has remarked throughout this litigation, class counsel ... have performed at exceptionally high levels, and all parties have been exceedingly well represented."
For more information about Chitwood & Harley, please visit our website at www.classlaw.com or contact Jennifer Morris at 1-888-873-3999 (toll-free), by e-mail at jlm@classlaw.com or at 1230 Peachtree Street, Suite 2300, Atlanta, Georgia 30309.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.