FindWhat Slapped with Class Action Lawsuit
As if FindWhat was not facing enough problems. On top of tumbling shares, suspision of click fraud and other problems associated with second tier search engines, FindWhat is now the target of a class action lawsuit. The lawsuit states that FindWhat issued, or caused to be issued, false and misleading statements during the Class Period to artificially inflate the value of FindWhat.com stock.
The law firm of Milberg Weiss Bershad & Schulman LLP has filed a class action lawsuit on behalf of purchasers of the securities of FindWhat.com between January 5, 2004 and May 4, 2005 inclusive, seeking to pursue remedies under the Securities Exchange Act of 1934 (the “Exchange Act”).
The law firm states the following : Beginning on January 5, 2004, with the completion of the first in a series of mergers and acquisitions by FindWhat in 2004, they began to blow their horn and accrue intangible assets in excess of their actual value.
The law firm feels that while FindWhat had misled the investing public and inflated the value of FindWhat.com’s stock during the class period, insiders sold 680,959 shares for personal proceeds of $11,320.179. Immediately following both of these disclosures, the Company’s stock plummeted, losing $2.04 per share, or 26% of its value on May 3 and an additional $2.33 per share, or an astonishing 38% on May 5, 2005.