Paskowitz & Associates Announces Class Action Lawsuit Brought on Behalf of FindWhat.com Purchasers
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The Complaint alleges that FindWhat.com and certain of its officers and directors violated federal securities laws. Specifically, with the completion of the first in a series of acquisitions by FindWhat.com, the Company began to accrue intangible assets in excess of their actual value. FindWhat.com disagreed with its auditor, Ernst & Young LLP, about the need to recognize an impairment of its goodwill in connection with FindWhat.com's 2004 financial statements. As a result of the dispute, on May 2, 2005, Ernst & Young LLP resigned and informed FindWhat.com of the following material weaknesses in its system of internal control over financial reporting: (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, FindWhat.com announced the resignation of its CFO, Defendant Brenda Aguis. While Defendants had inflated FindWhat.com's stock, insiders sold 680,959 shares for proceeds of $11,320.179. On May 3, FindWhat.com stock plummeted $2.04 per share, or 26% and an additional $2.33, or 38% on May 5, 2005.
If you purchased FindWhat.com securities during the Class Period, you may qualify to serve as Lead Plaintiff on behalf of the Class. Motions for appointment to the Lead plaintiff position must be filed no later than July 5, 2005. You are not required to have sold your FindWhat.com securities in order to claim damages, or to serve in this role.