According to an announcement made last night by the law firm of
Stull, Stull & Brody, a class action lawsuit against DoubleClick, Inc., some of its officers and
underwriters was filed yesterday in New York on behalf of purchasers of the company’s common stock.
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.