Company Believes Allegations Are Without Merit and Will
Defend the Lawsuit Vigorously
PITTSBURGH, Jan. 6 /PRNewswire/ -- FreeMarkets, Inc. (Nasdaq: FMKT)
announced today that a purported class action lawsuit has been filed against
the Company and certain of its officers and directors in the Federal District
Court in the Western District of Pennsylvania. The complaint alleges that the
defendants violated federal securities laws in connection with the Company's
initial public offering as a result of alleged misstatements and omissions
regarding the Company's relationship with General Motors Corporation.
The Company issued a press release on January 4, 2000 to announce that
General Motors had informed the company that day of its intention to cancel
its agreements with FreeMarkets. Following that announcement, the Company
received written notice of General Motors' exercise of its 90-day cancellation
right, which will be effective April 3, 2000.
The Company believes that the lawsuit misrepresents the facts and is
completely without merit. The Company and the individual defendants intend to
contest the lawsuit vigorously.
About FreeMarkets
FreeMarkets is the global leader in creating business-to-business online
auctions for industrial parts, raw materials, commodities and services. The
Company created online auctions for approximately $1.0 billion worth of
purchase orders in 1998 and approximately $1.4 billion worth of purchase
orders in the nine months ended September 30, 1999. Since 1995, FreeMarkets
has created online auctions for products in more than 50 supply verticals,
including injection molded plastic parts, commercial machinings, metal
fabrications, chemicals, printed circuit boards, corrugated packaging and
coal. More than 2,000 suppliers from over 30 countries have participated in
FreeMarkets auctions to date. The Company's current clients include United
Technologies Corporation, The Quaker Oats Company, Honeywell International
Inc., Eaton Corporation, Emerson Electric Company, FirstEnergy Corp.,
SmithKline Beecham plc and the Commonwealth of Pennsylvania.
This press release contains forward-looking statements. There are risks
and uncertainties that could cause actual results to differ from those
contained in the forward-looking statements, including, without limitation,
the uncertainties of litigation, and FreeMarkets' ability to continue to
execute agreements with new clients and to increase revenue from existing
clients. These and other risk factors are described in detail in FreeMarkets'
prospectus dated December 9, 1999, which is included as part of its
Registration Statement on Form S-1, filed with the Securities and Exchange
Commission on December 9, 1999.
For more information, contact Karen Kovatch of FreeMarkets, 412-297-8767,
or kkovatch@freemarkets.com.
SOURCE FreeMarkets, Inc.
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Related links:
http://www.freemarkets.com
CONTACT:
Karen Kovatch of FreeMarkets, 412-297-8767,
or kkovatch@freemarkets.com
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