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Case Status:    SETTLED
On or around 09/23/2015 (Date of order of distribution of settlement)

Filing Date: May 06, 2005

The original complaint charges Defendants with violations of the Securities Exchange Act of 1934. Specifically, the Complaint alleges that Defendants issued, or caused to be issued, false and misleading statements during the Class Period to artificially inflate the value of FindWhat.com stock. Beginning on January 5, 2004, with the completion of the first in a series of mergers and acquisitions by the Company in 2004, the Company began to accrue intangible assets in excess of their actual value. In violation of Generally Accepted Accounting Principals ("GAAP"), the Company disagreed with its outside auditor, Ernst & Young LLP, with respect to the need to recognize an impairment of its goodwill in connection with the Company's 2004 consolidated financial statements. As a result of the dispute, on May 2, 2005, Ernst & Young LLP resigned. Ernst & Young LLP also informed the Company of six material weaknesses in the Company's system of internal control over financial reporting, and these matters relate to (i) purchase accounting, (ii) goodwill impairment, (iii) revenue recognition for private label agreements and other revenue agreements, excluding those related to FindWhat.com Network revenue, (iv) personnel resources and technical accounting expertise, (v) quarterly and year-end financial statement close and review process, and (vi) segregation of duties. On May 4, 2005, the Company surprised the market with the announcement of the resignation of its CFO. As a result of these disclosures, during the class period, Defendants and other Company insiders knew, or recklessly disregarded the Company's inadequate internal control problems to facilitate the false impression of financial success to investors. While Defendants had misled the investing public and inflated the value of FindWhat.com's stock during the class period, insiders sold 680,959 shares for personal proceeds of $11,320.179. Immediately following both of these disclosures, the Company's stock plummeted, losing $2.04 per share, or 26% of its value on May 3 and an additional $2.33 per share, or an astonishing 38% on May 5, 2005.

According to the Company’s Form 10-Q for the quarterly period ended September 30, 2008, beginning on May 6, 2005, five putative securities fraud class action lawsuits were filed against us and certain of our former officers and directors in the United States District Court for the Middle District of Florida. The complaints allege that we and the individual defendants violated Section 10(b) of the Securities Exchange Act of 1934 (the “Act”) and that the individual defendants also violated Section 20(a) of the Act as “control persons” of MIVA. Plaintiffs purport to bring these claims on behalf of a class of our investors who purchased our stock between September 3, 2003 and May 4, 2005. Plaintiffs allege generally that, during the putative class period, we made certain misleading statements and omitted material information. Plaintiffs seek unspecified damages and other relief. On July 27, 2005, the Court consolidated all of the outstanding lawsuits under the case style In re MIVA, Inc. Securities Litigation, selected lead plaintiff and lead counsel for the consolidated cases, and granted Plaintiffs leave to file a consolidated amended complaint, which was filed on August 16, 2005. We and the other defendants moved to dismiss the complaint on September 8, 2005. On December 28, 2005, the Court granted Defendants’ motion to dismiss. The Court granted Plaintiffs leave to submit a further amended complaint, which was filed on January 17, 2006. On February 9, 2006, Defendants filed a renewed motion to dismiss. On March 15, 2007, the Court granted in large part Defendants’ motion to dismiss. On March 29, 2007, Defendants filed a motion for amendment to the March 15, 2007, order to include certification for interlocutory appeal or, in the alternative, for reconsideration of the motion to dismiss. On July 17, 2007, the Court (1) denied the motion for amendment to the March 15, 2007, order to include certification for interlocutory appeal and (2) granted the motion for reconsideration as to the issue of whether Plaintiffs pled a strong inference of scienter in light of intervening precedent. The Court requested additional briefing on the scienter issue, and on February 15, 2008, entered an Order dismissing one of the individual defendants from the lawsuit and limiting the claims that could be brought against another individual defendant. In addition, Plaintiffs previously had moved the Court to certify a putative class of investors, and Defendants had filed briefs in opposition thereto. On March 12, 2008, the Court entered an Order certifying a class of those investors who purchased the Company’s common stock from February 23, 2005, to May 4, 2005. The Court also dismissed two of the proposed class representatives for lack of standing. Plaintiffs have served discovery requests on Defendants, and the discovery phase of the lawsuit is presently underway.

On March 2, 2009, the defendants filed a motion for summary judgment. On August 25, 2009, Magistrate Judge Douglas N. Frazier signed the Report and Recommendation that the Motion for Summary Judgment be granted. On November 16, 2009, Judge John E. Steele adopted the Report and Recommendation. According to the Opinion and Order, Defendants’ Dispositive Motion for Summary Judgment is granted. As loss and causation cannot be shown, the case is dismissed with prejudice. The Clerk shall enter judgment in favor of the remaining defendants, terminate all pending deadlines and motions as moot, and close the file.

On December 15, 2009, the plaintiffs filed a notice of appeal. The appeal is currently pending in the Eleventh Circuit Court of Appeals.

COMPANY INFORMATION:

Sector: Technology
Industry: Computer Services
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: FWHT
Company Market: NASDAQ
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: M.D. Florida
DOCKET #: 05-CV-00201
JUDGE: Hon. John E. Steele
DATE FILED: 05/06/2005
CLASS PERIOD START: 01/05/2004
CLASS PERIOD END: 05/04/2005
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Berman DeValerio Pease Tabacco Burt & Pucillo (FL)
    515 North Flagler Drive - Suite 1701, Berman DeValerio Pease Tabacco Burt & Pucillo (FL), FL 33401
    561.835.9400 ·
  2. 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
  3. Dyer & Shuman, LLP
    801 E. 17th Avenue, Dyer & Shuman, LLP , CO 80218-1417
    303.861.3003 800.711.6483 · info@dyershuman.com
  4. Federman & Sherwood (Oklahoma City)
    120 North Robinson, Suite 2720, Federman & Sherwood (Oklahoma City), OK 73102
    405-235-1560 · wfederman@aol.com
  5. Law Office of Peter A. Lagorio
    63 Atlantic Avenue, Law Office of Peter A. Lagorio, MA 02110
    617-367-4200 617-227-3384 · plagorio@conversent.net
  6. Law Offices of Charles J. Piven, P.A.
    World Trade Center-Baltimore,401 East Pratt Suite 2525, Law Offices of Charles J. Piven, P.A., MD 21202
    410.332.0030 · pivenlaw@erols.com
  7. Lerach Coughlin Stoia Geller Rudman & Robbins LLP (Florida)
    197 S. Federal Highway, Suite 20, Lerach Coughlin Stoia Geller Rudman & Robbins LLP (Florida), FL 33432
    561-750-3000 561-750-3364 ·
  8. Lerach Coughlin Stoia Geller Rudman & Robbins LLP (San Diego)
    401 B Street, Suite 1700, Lerach Coughlin Stoia Geller Rudman & Robbins LLP (San Diego), CA 92101
    206.749.5544 206.749.9978 · info@lerachlaw.com
  9. Mager White & Goldstein, LLP
    2825 University Drive, Suite 350, Mager White & Goldstein, LLP, FL 33065
    954.341.0844 954.341.0855 · info@mwglawfirm.com
  10. Milberg Weiss Bershad & Schulman LLP (Boca Raton)
    5355 Town Center Road, Suite 900, Milberg Weiss Bershad & Schulman LLP (Boca Raton), FL 33486
    561.361.5000 561.367.8400 · info@milbergweiss.com
  11. Milberg Weiss Bershad & Schulman LLP (New York)
    One Pennsylvania Plaza, 49th Floor, Milberg Weiss Bershad & Schulman LLP (New York), NY 10119
    212.594.5300 212.868.1229 · info@milbergweiss.com
  12. Murray, Frank & Sailer LLP
    275 Madison Ave 34th Flr, Murray, Frank & Sailer LLP, NY 10016
    212.682.1818 212.682.1892 · email@murrayfrank.com
  13. Paskowitz & Associates
    60 East 42nd Street, 46th Floor, Paskowitz & Associates, NY 10165
    212.685.0969 212.685.2306 · classattorney@aol.com
  14. Roy Jacobs & Associates (New York)
    350 Fifth Avenue Suite 3000 , Roy Jacobs & Associates (New York), NY 10118
    · classattorney@pipeline.com
  15. Schatz & Nobel, P.C.
    330 Main Street, Schatz & Nobel, P.C., CT 06106
    800.797.5499 860.493.6290 · sn06106@AOL.com
  16. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
  17. Vianale & Vianale LLP (former Boca Raton)
    The Plaza - Suite 801, 5355 Town Center Road., Vianale & Vianale LLP (former Boca Raton), FL 33486
    561.391.4900 561.368.9274 · info@vianalelaw.com
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COURT: M.D. Florida
DOCKET #: 05-CV-00201
JUDGE: Hon. John E. Steele
DATE FILED: 05/03/2007
CLASS PERIOD START: 09/03/2003
CLASS PERIOD END: 05/04/2005
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Saxena White PA (Boca Raton)
    2424 North Federal Highway, Suite 307, Saxena White PA (Boca Raton), FL 33431
    800.361.5096 888.782.3081 · info@saxenawhite.com
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