Class Action Suit Filed Against DoubleClick
The complaint alleges, among other things, that after DoubleClick commenced a secondary public offering (SPO) of 2.5 million shares at $34.4375 per share on December 11, 1998, the company filed a registration statement, which was “materially false and misleading” because it failed to disclose, among other things, that “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 DoubleClick shares issued in connection with the DoubleClick SPO.”
The complaint also alleges that “the Underwriters had entered into agreements with customers whereby the Underwriters agreed to allocate DoubleClick shares to those customers in the DoubleClick SPO in exchange for which the customers agreed to purchase additional DoubleClick shares in the aftermarket at pre-determined prices.”
The complaint alleges similar wrongdoings by DoubleClick in connection with the company’s tertiary public offering of 7.5 million shares at $90.25 per shares on February 18, 2000.
Requests for comment left with Stull, Stull & Brody were not immediately answered.