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| 2001 News and Press Releases |
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HEADLINE ARCHIVED:
Picking Up The Pieces After IPO Boom Securities Cases Put Speed Limits On Internet Time, Provide Lessons On Recent Buying Frenzy
By: William K. Dodds
New York Law Journal. December 3, 2001
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Excerpt: THE INTERNET and high technology boom of the late 1990s saw the creation of hundreds of new companies in nascent markets, all pursuing "bigger, faster" business plans. Dot.coms and other new technology-dependent ventures sought rapid growth to crowd out competition in markets often characterized by low barriers to entry, to maintain and encourage the flow of capital from private and institutional investment sources, to attain swift public company status and to reward founders, employees and early stage funders with quick and substantial returns. This extraordinary rush to growth, so remarkable that "Internet time" became common parlance, was a departure from traditional models of business development. [FN1] The collapse of many technology and Internet-based companies has called into question the viability of these accelerated business plans in the marketplace. Recent decisions in securities litigation cases also provide important lessons in avoiding allegations that, in hindsight, companies proceeded with more haste than care to the requirements of the federal securities laws.
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