Company Believes Lawsuits Have no Merit and Intends to Vigorously Defend
SAN FRANCISCO, May 31 /PRNewswire/ -- MarketWatch.com, Inc. (Nasdaq: MKTW)
today responded to five securities class action lawsuits, naming certain
underwriters of its January 15, 1999 initial public offering, the Company and
its current or former officers and directors. The lawsuits appear to arise out
of alleged improper practices by its underwriters and were filed in the United
States District Court for the Southern District of New York.
The Company told its shareholders at its Annual Meeting that it believes
the lawsuits against it and certain of its current and former officers and
directors have no merit and while the outcome of any litigation is inherently
uncertain, the Company does not believe that these lawsuits should have a
material adverse effect on its business. MarketWatch.com intends to
vigorously defend these lawsuits.
The Company is currently aware of approximately twenty other companies
that have been sued in nearly identical lawsuits. The complaints focus on
alleged internal practices by certain investment banks in connection with
certain initial public offerings. It appears that the companies, officers and
directors are being sued because these companies had initial public offerings
that were underwritten by these investment banks.
Although several complaints have been filed, they are virtually identical
except for variations in the alleged class period, defendants named, and
whether or not certain federal securities claims are included. The Company
expects the complaints to be consolidated into one case. Plaintiffs claim
that defendants distributed a prospectus to investors and filed a registration
statement with the Securities and Exchange Commission that contained material
misstatements and omissions. They allege that the prospectus and registration
statement should have disclosed that the underwriters had allegedly solicited
and received excessive and undisclosed commissions from certain investors in
exchange for allocations of stock in MarketWatch.com's initial public offering
and that the underwriters allegedly obtained agreements from certain investors
to purchase stock in the aftermarket in exchange for allocations in the
initial public offering.
About MarketWatch.com, Inc.
MarketWatch.com, Inc., a leading financial media company, is the number
one financial news and information source on the Internet. Founded in 1997,
MarketWatch.com operates three web sites: cbs.marketwatch.com, bigcharts.com,
and U.K.-based ftmarketwatch.com. In addition to offering top-notch financial
reporting and investment tools on its web sites, MarketWatch.com licenses a
wide array of content and tools in custom-designed formats for brokerages and
other online businesses. The Company also produces the syndicated CBS
MarketWatch Weekend program, airs financial reports over CBS Network
Television, and provides updates every 30 minutes on the MarketWatch.com Radio
Network. Editorial content from cbs.marketwatch.com is distributed in major
newspapers and wireless networks.
Notice Regarding Forward-Looking Statements
This media release contains forward-looking statements that involve risks
and uncertainties. MarketWatch.com's actual results may differ materially
from those anticipated in these forward-looking statements, which include
statements as to the Company's current beliefs as to the outcome of pending
litigation. Factors that might contribute to such differences include the
fact that the outcome of any litigation is inherently uncertain as well as the
novel nature of the claims raised in the complaints, among others. These
forward-looking statements are based on information available to the Company
on the date hereof. MarketWatch.com, Inc. assumes no obligation to publicize
the results of any potential revision of these forward-looking statements.
SOURCE MarketWatch.com, Inc.
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Related links:
http://cbs.marketwatch.com
CONTACT:
Joan P. Platt, Chief Financial Officer of
MarketWatch.com, Inc., 415-733-0500, or
investor_relations@marketwatch.com
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