Class Action Lawsuit Commenced Against Priceline.com Inc. (PCLN) By Bernstein Liebhard & Lifshitz, LLP.
A securities class action lawsuit was commenced on behalf of purchasers of the publicly-traded securities of Priceline.com Inc. (Nasdaq: PCLN) ("Priceline" or the "Company"), between July 24, 2000 and September 26, 2000, inclusive (the "Class Period"). A copy of the complaint is available from the Court.
The case is pending in the United States District Court for the District of Connecticut. Named as defendants in the complaint are Priceline, Richard S. Braddock (Chairman), Daniel H. Schulman (President, Chief Executive Officer and Chief Operating Officer), and Jay S. Walker (Founder and Vice Chairman). The complaint charges defendants with violations of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The complaint alleges that the defendants issued materially false and misleading information regarding Priceline's financial condition and prospects. Specifically, the complaint charges that defendants misrepresented that the Company would soon be profitable, that the Company's customer loyalty was accelerating and that the Company's business model would continue to be effective.
The dissemination of this materially misleading information caused Priceline's common stock to be artificially inflated throughout the Class Period. Certain Company insiders took advantage of this inflated stock price to sell $197 million of their own shares to the unsuspecting public during the Class Period.
The truth about Priceline's operating condition was revealed to the investing public before the market opened on September 27, 2000, when Priceline disclosed, among other things, that the Company would not make money in the third quarter due to weakness in the sale of airline tickets and that revenues would be approximately $340 million to $345 million, significantly below analysts forecasts of $360 million to $380 million. These disclosures caused Priceline's stock price to decline 42% to a 52-week low of $10.75 per share.
Plaintiff seeks to recover damages on behalf of all those who purchased or otherwise acquired Priceline securities during the Class Period.
If you purchased or otherwise acquired Priceline securities during the Class Period, and either lost money on the transaction or still hold the securities, you may wish to join in the action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than December 1, 2000.
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 Bernstein Liebhard & Lifshitz, LLP, or other counsel of your choice, to serve as your counsel in this action.
Bernstein Liebhard & Lifshitz, LLP has been retained as one of the law firms to represent the Class. The attorneys at Bernstein Liebhard & Lifshitz, 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. For more information about Bernstein Liebhard & Lifshitz, LLP, please visit our website at http://www.bernlieb.com. 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 Ms. Linda Flood, Director of Shareholder Relations, at Bernstein Liebhard & Lifshitz, LLP, 10 East 40th Street, New York, New York 10016, 800-217-1522 or 212-779-1414 or by e-mail at PCLN@bernlieb.com.