Razorfish sued by 'misled' investors

NEW YORK: Hundreds of investors are suing Internet advertising agency Razorfish for allegedly inflating stock prices through IR hyperbole.

NEW YORK: Hundreds of investors are suing Internet advertising agency Razorfish for allegedly inflating stock prices through IR hyperbole.

NEW YORK: Hundreds of investors are suing Internet advertising agency Razorfish for allegedly inflating stock prices through IR hyperbole.

Five class action suits cite news releases that allegedly exaggerated Razorfish's stability and set investors up for a fall.

'We've heard from hundreds of shareholders, both large and small' said Neil Rothstein, a lawyer with Scott & Scott. 'They're very angry and they feel they've been misled.'

The suits quote from a string of releases sent over Business Wire between April and June 2000 and call attention to Razorfish's claim that it 'successfully integrated operations'. However, the company's stock, which reached dollars 55 in mid-February, plummeted to dollars 5 on October 6, following an earnings warning.

At press time, the price stood at dollars 1.66.

Several of the suits note that 'During the Class Period, insiders sold a total of 1,215,716 shares of Razorfish stock for proceeds of dollars 12,763,815 before disclosing the truth about the company.'

Razorfish declined to comment on the issue.



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