UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
HOWARD BUNCH, on behalf of himself and all
others similarly situated,
CIVIL ACTION NO.
Plaintiff,
CLASS ACTION COMPLAINT
v. FOR VIOLATIONS OF FEDERAL
SECURITIES LAWS
CRAIG WINN; REX SCATENA; THOMAS
MORGAN; GLENDA DORCHAK; DEAN JURY TRIAL DEMANDED
JOHNSON and FLEETBOSTON ROBERTSON
STEPHENS, INC.,
Defendants.
Plaintiff, individually and on behalf of all other persons similarly situated, by
attorneys, for plaintiff's Complaint, allege upon the investigation made by and through plaintiff's
which included, inter alia, a review of relevant filings made by Value America, Inc. ("Value
"Company") with the Securities and Exchange Commission, as well as, tele-conferences, press
news articles, analyst reports, and media reports concerning the Company. Furthermore, this
is based upon plaintiff's personal knowledge as to plaintiff and plaintiff's own acts, and upon
and belief as to all other matters, based upon the aforementioned investigation.
NATURE OF THE ACTION
1. This is a class action on behalf of all persons, other than defendants and
parties, who purchased, converted, exchanged or otherwise acquired Value America common stock, as
defined below, including, but not limited to, during the period from April 8, 1999 through December
2000 (the "Class Period") to recover damages caused by defendants' violations of the federal
law.
2. In the wake of the raging bull market of the 1990's lies a series of
alleged malfeasance by major Wall Street securities firms. As reported in national news sources
SNIPPETS:
UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK
JOHNSON and FLEETBOSTON ROBERTSON
Plaintiff, individually and on behalf of all other persons similarly situated, by plaintiff's
which included, inter alia, a review of relevant filings made by Value America, Inc. ("Value
"Company") with the Securities and Exchange Commission, as well as, tele-conferences, press
news articles, analyst reports, and media reports concerning the Company.
This is a class action on behalf of all persons, other than defendants and certain related
parties, who purchased, converted, exchanged or otherwise acquired Value America common
2000 (the "Class Period") to recover damages caused by defendants' violations of the federal
alleged malfeasance by major Wall Street securities firms.
investment banks charged issuers of new securities excessive commissions and inflated
Second, investigators are examining, and have evidence, that major investment banks
exchange for promises by these customers that they would purchase additional shares of the
after-market, thereby inflating and maintaining the market price for the IPOs.
Credit Suisse emerged as a leading underwriter of technology
participation in the IPO market and after-market trading.
inflation in the IPO stock price, above the offering price, and create a false sense of
obtain allocations of stock on the offering - - but before the first after-market trade.
Securities Act of 1933 15 U.S.C. '' 77k, 77land 77o and Sections 10and
shareholders of Value America, which documents were materially false and misleading, during
Period (including the trading of Value America stock based upon misleading information).
Value America and exercised such control to cause the Company to engage in the violations and
Prospectus and Registration Statement dated April 8,
Manipulated Securities omitted and/or misrepresented material facts about the offering of
at the major underwriting firms garnered as much as $100 million a year in compensation.
In direct contravention to Rules 101 and 102 of Regulation M of the Exchange Act,
employed manipulation and/or deceptive devices or contrivances to
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