LITTLE ROCK, Ark., May 9, 2001 (PRIMEZONE) -- The Law Firm of Cauley Geller Bowman & Coates, LLP announced today that a class action has been filed in the United States District Court for the Southern District of New York on behalf of purchasers of PlanetRx.com, Inc. ("PlanetRx" or the "Company") (OTCBB:PLRX) securities during the period between October 7, 1999 and March 24, 2000, inclusive (the "Class Period").
The complaint charges PlanetRx; William J. Razzouk; Steve Valenzuela; The Goldman Sachs Group, Inc. ("Goldman Sachs"); BancBoston Robertson Stephens, Inc. ("BancBoston"); Bear Stearns & Co., Inc. ("Bear Stearns"); Merrill Lynch, Fenner & Smith, Incorporated ("Merrill Lynch"); and Salomon Smith Barney, Inc. ("Salomon") with violations of Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. On October 7, 1999, PlanetRx commenced an initial public offering of 6 million of its shares of common stock at an offering price of $16 per share (the "PlanetRx IPO"). In connection therewith, PlanetRx filed a registration statement, which incorporated a prospectus ("the "Prospectus"), with the SEC. The complaint further alleges that the Prospectus was materially false and misleading because it failed to disclose, among other things, that: (i) Goldman Sachs, BancBoston, Bear Stearns, Merrill Lynch and Salomon had solicited and received excessive and undisclosed commissions from certain investors in exchange for which Goldman Sachs, BancBoston, Bear Stearns, Merrill Lynch and Salomon allocated to those investors material portions of the restricted number of PlanetRx shares issued in connection with the PlanetRx IPO; and (ii) Goldman Sachs, BancBoston, Bear Stearns, Merrill Lynch and Salomon had entered into agreements with customers whereby Goldman Sachs, BancBoston, Bear Stearns, Merrill Lynch and Salomon agreed to allocate PlanetRx shares to those customers in the PlanetRx IPO in exchange for which the customers agreed to purchase additional PlanetRx shares in the aftermarket at pre-determined prices. As alleged in the complaint, the SEC is investigating underwriting practices in connection with several other initial public offerings.
If you bought the securities of PlanetRx between October 7, 1999 and March 24, 2000, inclusive, you may, no later than May 28, 2001 request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Cauley Geller Bowman & Coates, LLP, or other counsel of your choice, to serve as your counsel in this action.
Cauley Geller Bowman & Coates, LLP has substantial experience representing investors in securities fraud class action lawsuits such as this. The firm has offices in Florida, Arkansas and California, but represents shareholders from throughout the nation. If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you are encouraged to call or e-mail the Firm or visit the Firm's Website at www.classlawyer.com.
CAULEY GELLER BOWMAN & COATES, LLP Client Relations Department: Sue Null, Charlie Gastineau or Jackie Addison P.O. Box 25438 Little Rock, AR 72221-5438 Toll Free: 1-888-551-9944 E-mail: info@classlawyer.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca