Shareholder Class Action Filed Against eToys, Inc. by the Law Firm Of Schiffrin & Barroway, LLP
BALA CYNWYD, Pa., July 5 -- The following statement was
issued today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the United
States District Court for the Southern District of New York, located at
500 Pearl Street, New York, NY 10007, on behalf of all purchasers of the
common stock of eToys, Inc. (Nasdaq: ETYSQ) ("eToys" or the "Company") from
May 19, 1999 through December 6, 2000, inclusive (the "Class Period").
If you wish to discuss this action or have any questions concerning this
notice or your rights or interests with respect to these matters, please
contact Schiffrin & Barroway, LLP (Marc A. Topaz, Esq. or Stuart L. Berman,
Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at
info@sbclasslaw.com.
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 alleges that the Prospectus was materially false and misleading
because it failed to disclose, among other things, that: (i) Goldman Sachs &
Co. ("Goldman Sachs"), BancBoston Robertson Stephens, Inc. ("Robertson
Stephens") and Merrill Lynch Pierce ("Merrill Lynch") had solicited and
received excessive and undisclosed commissions from certain investors in
exchange for which Goldman Sachs, Robertson Stephens and Merrill Lynch
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 Lynch had entered into agreements with
customers whereby Goldman Sachs, Robertson Stephens and Merrill Lynch 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.
Plaintiff seeks to recover damages on behalf of class members and is
represented by the law firm of Schiffrin & Barroway, LLP, who has significant
experience and expertise prosecuting class actions on behalf of investors and
shareholders. For more information on Schiffrin & Barroway, or to sign-up to
participate in this action online, please visit http://www.sbclasslaw.com.
If you are a member of the class described above, you may, not later than
August 27, 2001, move the Court to serve as lead plaintiff of the class, if
you so choose. In order to serve as lead plaintiff, however, you must meet
certain legal requirements.
CONTACT:
Schiffrin & Barroway, LLP
Marc A. Topaz, Esq.
Stuart L. Berman, Esq.
Three Bala Plaza East, Suite 400,
Bala Cynwyd, PA 19004
1-888-299-7706 (toll free)
1-610-667-7706
info@sbclasslaw.com
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