Wechsler Harwood Announces Class Action Suit Against PlanetRx.com, Inc.

NEW YORK, April 27 /PR Newswire Interactive Release/ -- The following statement was issued today by the law firm of Wechsler Harwood Halebian & Feffer LLP:

The law firm of Wechsler Harwood Halebian & Feffer LLP announces that a class action lawsuit was filed on April 26, 2001 on behalf of purchasers of the securities of PlanetRx.com, Inc. ("PlanetRx" or the "Company") (OTC: PLRX.OB) (BULLETIN BOARD: PLRX.OB) between October 7, 1999 and March 24, 2000, inclusive. A copy of the complaint filed in this action is available from the Court.

The action is pending in the United States District Court for the Southern District of New York, located at 500 Pearl Street, New York, NY 10007, against defendants PlanetRx; William J. Razzouk; Steve Valenzuela; The Goldman Sachs Group, Inc. ("Goldman Sachs"); BancBoston Roberston Stephens, Inc. ("BancBoston"); Bear Stearns & Co., Inc.; ("Bear Stearns"); Merrill Lynch, Fenner & Smith, Incorporated ("Merrill Lynch"); and Salomon Smith Barney, Inc. (Salomon).

The complaint alleges violations of Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. On October 7, 1999, PlanetRx commenced an initial public offering of 6 million of its shares of common stock at an offering price of $16 per share (the "PlanetRx IPO"). In connection therewith, PlanetRx filed a registration statement, which incorporated a prospectus (the "Prospectus"), with the SEC. The complaint further alleges that the Prospectus was materially false and misleading because it failed to disclose, among other things, that: (i) Goldman Sachs, BancBoston, Bear Stearns, Merrill Lynch and Salomon had solicited and received excessive and undisclosed commissions from certain investors in exchange for which Goldman Sachs, BancBoston, Bear Stearns, Merrill Lynch and Salomon allocated to those investors material portions of the restricted number of PlanetRx shares issued in connection with the PlanetRx IPO; and (ii) Goldman Sachs, BancBoston, Bear Stearns, Merrill Lynch and Salomon had entered into agreements with customers whereby Goldman Sachs, BancBoston, Bear Stearns, Merrill Lynch and Salomon agreed to allocate PlanetRx shares to those customers in the PlanetRx IPO in exchange for which the customers agreed to purchase additional PlanetRx shares in the aftermarket at pre-determined prices. As alleged in the complaint, the SEC is investigating underwriting practices in connection with several other initial public offerings.

If you are a member of the Class described above, and if you meet certain other legal requirements, you may, no later than May 28, 2001, move the Court to serve as a 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 plaintiff." The requirements for serving as a lead plaintiff are set forth in the Private Securities Litigation Reform Act of 1995 (15 U.S.C. S 78u-4). Please note, however, that class members need not seek appointment as lead plaintiff in order to share in any recovery resulting from this litigation.

Wechsler Harwood Halebian & Feffer LLP has taken a leading role in many important actions on behalf of defrauded shareholders. The Wechsler Harwood Halebian & Feffer LLP website (http://www.whhf.com/) has more information about the firm.

If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following:

  Wechsler Harwood Halebian & Feffer LLP
  488 Madison Avenue 8th Floor
  New York, NY 10022
  Phone: 877-935-7400 (Toll Free)

  Ramon Pinon IV, Shareholder Relations Department:  rpinoniv@whhf.com

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SOURCE: Wechsler Harwood Halebian & Feffer LLP

Contact: Wechsler Harwood Halebian & Feffer LLP, 877-935-7400

Website: http://www.whhf.com/