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Law Firm Milberg Weiss Announces Class Action Lawsuit Against El Sitio, Inc.

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NEW YORK--(BUSINESS WIRE)--June 22, 2001

The law firm of Milberg Weiss Bershad Hynes & Lerach LLP announces that a class action lawsuit was filed on June 22, 2001, on behalf of purchasers of the securities of El Sitio, Inc. ("El Sitio" or the "Company") (NASDAQ: LCTO) between December 9, 1999 and December 6, 2000, inclusive.

A copy of the complaint filed in this action is available from the Court, or can be viewed on Milberg Weiss' website at: http://www.milberg.com/elsitio/

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 El Sitio, Credit Suisse First Boston Corporation ("Credit Suisse"), Lehman Brothers, Inc. ("Lehman"), Merrill Lynch, Pierce, Fenner & Smith, Incorporated ("Merrill"), Salomon Smith Barney, Inc. ("Smith Barney"), BancBoston Robertson Stephens, Inc. ("Robertson Stephens"), Roberto Cibrian-Campoy, Roberto Vivo-Chaneton, Horacio Milberg and Alfredo Jimenez De Arechaga.

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 December 9, 1999, El Sitio commenced an initial public offering of 8,200,000 of its shares of common stock at an offering price of $16 per share (the "El Sitio IPO"). In connection therewith, El Sitio 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) Credit Suisse, Lehman, Merrill, Smith Barney and Robertson Stephens had solicited and received excessive and undisclosed commissions from certain investors in exchange for which Credit Suisse, Lehman, Merrill, Smith Barney and Robertson Stephens allocated to those investors material portions of the restricted number of El Sitio shares issued in connection with the El Sitio IPO; and (ii) Credit Suisse, Lehman, Merrill, Smith Barney and Robertson Stephens had entered into agreements with customers whereby Credit Suisse, Lehman, Merrill, Smith Barney and Robertson Stephens agreed to allocate El Sitio shares to those customers in the El Sitio IPO in exchange for which the customers agreed to purchase additional El Sitio 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 bought the securities of El Sitio between December 9, 1999 and December 6, 2000, you may, no later than August 7, 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 Milberg Weiss Bershad Hynes & Lerach LLP, or other counsel of your choice, to serve as your counsel in this action.

Milberg Weiss Bershad Hynes & Lerach LLP, a 170-lawyer firm with offices in New York City, San Diego, San Francisco, Los Angeles, Boca Raton, Seattle and Philadelphia, is active in major litigations pending in federal and state courts throughout the United States. Milberg Weiss has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of World War II and other human rights violations, and has been responsible for more than $30 billion in aggregate recoveries. The Milberg Weiss Web site (http://www.milberg.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 attorneys:

Steven G. Schulman or Samuel H. Rudman One Pennsylvania Plaza, 49th fl. New York, NY, 10119-0165

Phone number: (800) 320-5081 Email: elsitiocase@milbergNY.com Website: http://www.milberg.com
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Publication:Business Wire
Date:Jun 22, 2001
Words:707
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