Priceline Charged in Class Action Suit

Guide to E-Commerce Technology

As if the recent suspension of its licensed online grocery and gasoline businesses and the cessation of its barely-launched used merchandise web offering werenÕt enough, Priceline.com can now add another problem to its shopping cart. A Philadelphia law firm, Spector, Roseman and Kodroff, has filed a class action suit against Priceline.com on behalf of shareholders who purchased stock in the company during the period of July 24 through September 26 of this year. The suit, filed last week in U.S. District Court in Connecticut, seeks to recover unspecified damages. The complaint charges that Priceline.com violated provisions of the Securities Exchange Act and alleges that the company issued false and misleading information that artificially inflated the stock price. Last week, Pricelince.com announced that the Priceline WebHouse Club, a licensee of Priceline.com that let consumers name their prices online for gas and groceries, would shut down. The same week, another Priceline licensee, Perfect Yardsale Inc, which offered used merchandise on the Priceline.com site, ceased operations entirely.