Shareholder Class Action Filed Against eToys, Inc. By the Law Firm of Wechsler Harwood Halebian & Feffer LLP
PRNewswire
NEW YORK
Jul 16, 2001
The law firm of Wechsler Harwood Halebian & Feffer LLP announces that a class action lawsuit was filed on July 13, 2001, on behalf of purchasers of the securities of eToys, Inc. ("eToys" or the "Company") (NASDAQ: ETYS) between May 19, 1999 and May 26, 2000, inclusive.
The action is pending in the United States District Court, Southern District of New York, located at 500 Pearl Street, New York, NY 10007, against defendants The Goldman Sachs Group, Inc. ("Goldman Sachs"), FleetBoston Robertson Stephens, Inc. ("Robertson Stephens"), Merrill Lynch Pierce, Fenner & Smith Incorporated ("Merrill"), Edward C. Lenk and Steven J. Schoch.
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 or about May 19, 1999, eToys commenced an initial public offering of 8,320,000 of its shares of common stock at an offering price of $20.00 per share (the "eToys IPO"). In connection therewith, eToys 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, Robertson Stephens and Merrill had solicited and received excessive and undisclosed commissions from certain investors in exchange for which Goldman Sachs, Robertson Stephens and Merrill allocated to those investors material portions of the restricted number of eToys shares issued in connection with the eToys IPO; and (ii) Goldman Sachs, Robertson Stephens and Merrill had entered into agreements with customers whereby Goldman Sachs, Robertson Stephens and Merrill agreed to allocate eToys shares to those customers in the eToys IPO in exchange for which the customers agreed to purchase additional eToys shares in the aftermarket at pre-determined prices.
If you bought the securities of eToys between May 19,1999 and May 26, 2000, you may, no later than August 27, 2001, 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 plaintiff." 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 Wechsler Harwood Halebian & Feffer LLP or other counsel of your choice, to serve as your counsel in this action.
Wechsler Harwood has extensive experience representing shareholders in class actions and has served as lead counsel on behalf of shareholders in many such actions. The reputation and expertise of this firm in shareholder and other class actions has repeatedly been recognized by the courts. The Wechsler Harwood Halebian & Feffer LLP website (http://www.whhf.com/) has more information about the firm.
If you wish to discuss these actions, or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Wechsler Harwood Halebian & Feffer LLP, 488 Madison Avenue, New York, New York 10022, by calling toll free 877-935-7400 or by contacting: David Leifer, Shareholder Relations Department - Dleifer@whhf.com.
SOURCE: Wechsler Harwood Halebian & Feffer LLP
Contact: David Leifer, Shareholder Relations Department of Wechsler
Harwood Halebian & Feffer LLP, +1-877-935-7400, Dleifer@whhf.com
Website: http://www.whhf.com/