Milberg Weiss Announces The Filing Of A Class Action Suit Against Alloy, Inc., Matthew C. Diamond, James K. Johnson Jr. and Samuel A. Gradess.Business Editors/Legal Writers NEW YORK--(BUSINESS WIRE)--March 7, 2003 The law firm of Milberg Weiss Bershad Hynes & Lerach LLP LLP - Lower Layer Protocol announces that a class action lawsuit class action lawsuit A lawsuit in which one party or a limited number of parties sue on behalf of a larger group to which the parties belong. For example, investors may bring a class action lawsuit against a brokerage firm that has actively promoted a tax was filed on March 7, 2003, on behalf of purchasers of the securities of Alloy, Inc. ("Alloy" or the "Company") (Nasdaq:ALOY) between August 1, 2002 and January 23, 2003, inclusive, (the "Class Period"), and who suffered damages thereby. A copy of the complaint filed in this action is available from the Court, or can be viewed on Milberg Weiss' Web site at: http://www.milberg.com/cases/alloy/ The action, numbered 03-CV-1597, is pending in the United States District Court United States District Court In the U.S., any of the 94 trial courts of general jurisdiction in the federal judicial system. Each state, as well as the District of Columbia and the Commonwealth of Puerto Rico, has at least one federal district court. for the Southern District of New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , 500 Pearl Street, New York, NY, before the Hon. William H. Pauley III against defendants Alloy, Matthew C. Diamond (CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. ), James K. Johnson Jr. (President and COO) and Samuel A. Gradess (CFO See Chief Financial Officer. ). The complaint charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated prom·ul·gate tr.v. prom·ul·gat·ed, prom·ul·gat·ing, prom·ul·gates 1. To make known (a decree, for example) by public declaration; announce officially. See Synonyms at announce. 2. thereunder, by issuing a series of materially false and misleading statements to the market between August 1, 2002 and January 23, 2003. Alloy is a teen-focused media company and direct marketer that targets Generation Y consumers, i.e. the approximately 60 million people in the United States between the ages of 10 and 24. The complaint alleges that the Company claimed that its merchandising and advertising segments complemented one another in a way that gave the Company an edge over competitor teen retailers and media businesses and which would enable it to succeed despite difficult market conditions in the second half of 2002. Unbeknownst to investors, the Company faced fierce competition for the youth market and the weak economy forced the Company to cut its prices and increase operating expenses, e.g. by offering free shipping and deep discounts, thereby eroding Alloy's gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. . On January 23, 2003, the Company shocked the market by announcing that EBTA EBTA European Brief Therapy Association EBTA European Bobath Tutors Association EBTA Electronic Bonding Trouble Administration EBTA Evaluasi Belajar Tahap Akhir EBTA Evidence-Based Technical Analysis EBTA Employer Based Training Accreditation for its fiscal fourth quarter ending January 31, 2003 would be $11 million to $12 million instead of the previously projected $15 million to $16 million and that fiscal 2002 EBTA would be in the range of $30 to $31 million instead of the previously forecast $34 million to $38 million. On this news, the Company's share priced plummeted by 49%, or $4.57, from the previous day's closing price of $9.10. If you bought the securities of Alloy between August 1, 2002 and January 23, 2003, and sustained damages, you may, no later than May 6, 2003, 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 An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called 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 (http://www.milberg.com) is a 190-lawyer firm with offices in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. , San Diego, San Francisco, Los Angeles, Boca Raton, Philadelphia and Seattle, and 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 others, and has been responsible for more than $20 billion in aggregate recoveries. Please contact the Milberg Weiss Web site for 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 One Pennsylvania Plaza, 49th fl. New York, NY, 10119-0165 Phone number: 800/320-5081 E-mail: alloy@milbergNY.com Web site: http://www.milberg.com |
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