PrimeBuy Network.com, Inc. Conclusion: According to the docket posted, on September 29, 2004, the Court entered the Order by Judge Mikel H. Williams finding moot the plaintiffs’ motion for class and subclass certification and denying the plaintiffs’ motion for entry of default judgment against the defendants. On November 3, 2004, the plaintiffs filed a motion for dismissal without prejudice, and on November 15, 2004, the Court entered the Order by the Honorable Edward J. Lodge granting the motion for dismissal without prejudice. The case is closed.
The original complaint alleges that, during the class period, PrimeBuy and its co-founders violated multiple sections of the Securities Act of 1933, the Securities Exchange Act of 1934, and the Idaho Securities and Consumer Protection Acts, by misrepresenting and omitting material facts in connection with the operation, financial condition and prospects of PrimeBuy, and in connection with PrimeBuy securities. The complaint further alleges that defendants were conducting a classic 'pyramid' scheme, in which the PrimeBuy Internet Mall was simply a multilevel marketing scheme, offering an array of shopping 'opportunities' already available on the Internet. In addition, it is asserted that defendants misrepresented that the memberships and/or stock issued by PrimeBuy complied with applicable state and federal securities laws, and that the Company would be holding an initial public offering of its stock during September 2000. As a result of these false and misleading statements and omissions, investors are left holding worthless shares of unregistered stock in an allegedly illegal pyramid scheme.
SIC Code: 7375
Industry: Computer Services
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