Case Page

 

Case Status:    DISMISSED    
On or around 08/20/2004 (Other)

Filing Date: July 16, 2002

According to the docket posted, on June 29, 2004, the plaintiffs filed a notice of appeal from the Judgment dismissing the complaint. On August 20, 2004, the Court entered the certified copy of the Mandate of the Second Circuit Court of Appeals dismissing the appeal.

In a Press Release dated April 28, 2004, the court dismissed the first amended complaint with leave to file a second amended complaint, concluding that the amended complaint fails to plead that each defendant made misrepresentations and that it utilizes group pleading for the scienter allegations, which fails with respect to each of the individual defendants.

The original complaint charges Cross Media and its Chief Executive Officer
and Chairman of the Board of Directors, with violations of Sections 10(b) and
20(a) of the Securities Exchange Act of 1934, and Rule 10b-5, by issuing a
series of materially false and misleading statements to the market during the
Class Period. On November 5, 2001, the start of the Class Period, Cross Media
announced that it expected both revenues and earnings for 2002 to increase in
excess of 50 percent. Defendants continued to issue numerous press releases
during the Class Period which touted the Company's performance and represented
that revenues and earnings were increasing. Additionally, defendants
misrepresented the impact and nature of the FTC proceedings brought against the
Company and others. The material misstatements and omissions had the cause and
effect of creating in the market an unrealistically positive assessment of Cross
Media and its business, finances and operations, thus causing the Company's
common stock to be overvalued and artificially inflated at all relevant times.
The truth regarding Cross Media was not fully disclosed until July 12, 2002,
when defendants finally revealed that Cross Media would have a loss for the
second quarter of 2002 and that revenues for the year would be significantly
less than previously predicted. In reactions to the July 12 news release and
conference call, the common stock price of Cross Media dropped drastically, from
$6.54 on July 10, to $4.88 on July 11, to $2.71 on July 12.

COMPANY INFORMATION:

Sector: Services
Industry: Advertising
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: XMM
Company Market: American SE
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: S.D. New York
DOCKET #: 02-CV-05462
JUDGE: Hon. Milton Pollack
DATE FILED: 07/16/2002
CLASS PERIOD START: 11/05/2001
CLASS PERIOD END: 07/11/2002
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Bernard M. Gross
    1500 Walnut Street, Suite 600, Bernard M. Gross, PA 19102
    215.561.3600 215.561.3000 · bmgross@BernardMGross.com
  2. Bernstein Liebhard & Lifshitz, LLP (New York)
    10 E. 40th Street, 22nd Floor, Bernstein Liebhard & Lifshitz, LLP (New York), NY 10016
    800.217.1522 · info@bernlieb.com
  3. Brodsky & Smith, LLC (former Pennysylvania)
    11 Bala Avenue, Suite 39, Brodsky & Smith, LLC (former Pennysylvania), PA 19004
    610.668.7987 610.660.0450 · esmith@Brodsky-Smith.com
  4. Cohen, Milstein, Hausfeld & Toll, P.L.L.C. (Washington, DC)
    1100 New York Avenue, N.W., Suite 500, West Tower, Cohen, Milstein, Hausfeld & Toll, P.L.L.C. (Washington, DC), DC 20005
    202.408.4600 202.408.4699 · lawinfo@cmht.com
  5. Law Offices of Marc S. Henzel (Lawrence)
    335 Central Avenue, Law Offices of Marc S. Henzel (Lawrence), NY 11559
    516.374.0707 516.295.3473 · securitiesfraud@comcast.net
  6. Stull, Stull & Brody (New York)
    6 East 45th Street, Stull, Stull & Brody (New York), NY 10017
    310.209.2468 310.209.2087 · SSBNY@aol.com
No Document Title Filing Date
COURT: S.D. New York
DOCKET #: 02-CV-05462
JUDGE: Hon. Milton Pollack
DATE FILED: 12/13/2002
CLASS PERIOD START: 11/05/2001
CLASS PERIOD END: 07/11/2002
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Bernstein Liebhard & Lifshitz, LLP (New York)
    10 E. 40th Street, 22nd Floor, Bernstein Liebhard & Lifshitz, LLP (New York), NY 10016
    800.217.1522 · info@bernlieb.com
  2. Paskowitz & Associates
    60 East 42nd Street, 46th Floor, Paskowitz & Associates, NY 10165
    212.685.0969 212.685.2306 · classattorney@aol.com
No Document Title Filing Date