Resonate Gets Sued

Complaint alleges that the Prospectus filed preparatory to its IPO was 'materially false and misleading'

December 12, 2001

3 Min Read

NEW YORK -- The Plaintiffs' Executive Committee in In re: Initial Public Offering Securities Litigation, 21 MC 92 (SAS) announces that a class action lawsuit was filed on December 6, 2001, on behalf of purchasers of the common stock of Resonate, Inc. ("Resonate" or the "Company") (Nasdaq: RSNT) between August 2, 2000 and December 6, 2000, inclusive. The action is pending in the United States District Court, Southern District of New York, located at 500 Pearl Street, New York, NY against defendants Resonate, Inc., certain of its officers and its underwriters. 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 August 2, 2000, Resonate commenced an initial public offering of 4,000,000 of its shares of common stock at an offering price of $21 per share (the "Resonate IPO"). In connection therewith, Resonate 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) the underwriters had solicited and received excessive and undisclosed commissions from certain investors in exchange for which the underwriters allocated to those investors material portions of the restricted number of Resonate shares issued in connection with the Resonate IPO; and (ii) the underwriters had entered into agreements with customers whereby the underwriters agreed to allocate Resonate shares to those customers in the Resonate IPO in exchange for which the customers agreed to purchase additional Resonate shares in the aftermarket at pre-determined prices.If you bought the common stock of Resonate between August 2, 2000 and December 6, 2000, you may, no later than sixty days from today 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. This action is being prosecuted by the Plaintiffs' Executive Committee of In re: Initial Public Offering Securities Litigation, 21 MC 92 (SAS). By Order, dated October 12, 2001, the Honorable Shira A. Scheindlin appointed the following firms to serve as the Plaintiffs' Executive Committee: Berstein Liebhard & Lifshitz, LLP, Milberg Weiss Bershad Hynes & Lerach LLP, Schiffrin & Barroway LLP, Sirota & Sirota LLP, Stull, Stull & Brody and Wolf Haldenstein Freeman Adler & Herz LLP. The Plaintiffs' Executive Committee has been vested by the Court with the responsibility for the prosecution of the IPO Securities Litigation. 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: CONTACT INFO: 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) or 1-610-667-7706
Or by e-mail at [email protected]Resonate Inc.

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