UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
JIMMY CHIN, on behalf of himself and all others
similarly situated,
CIVIL ACTION NO.
Plaintiff,
CLASS ACTION COMPLAINT
v. FOR VIOLATIONS OF FEDERAL
SECURITIES LAWS
ENGAGE TECHNOLOGIES, INC.; PAUL
SCHAUT; DAVID FISH; STEPHEN ROYAL; JURY TRIAL DEMANDED
DAVID WETHERELL; BEAR STEARNS & CO.,
INC.; CREDIT SUISSE FIRST BOSTON CORP.;
DAIN RAUSCHER, INC.; DEUTSCHE BANC
ALEX. BROWN INCORPORATED; THE
GOLDMAN SACHS GROUP, INC.; J.P.
MORGAN CHASE & CO.; and PRUDENTIAL
SECURITIES INCORPORATED,
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 Engage Technologies, Inc.
"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 Engage common stock, as defined
below, including, but not limited to, during the period from July 19, 1999 through December 6, 2000
"Class Period") to recover damages caused by defendants' violations of the federal securities law.
2. In the wake of the raging bull market of the 1990's lies a series of
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UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK
Plaintiff, individually and on behalf of all other persons similarly situated, by plaintiff's
"Company") with the Securities and Exchange Commission, as well as, tele-conferences, press
news articles, analyst reports, and media reports concerning the Company.
"Class Period") to recover damages caused by defendants' violations of the federal securities
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.
of the investigation is defendant investment bank Credit Suisse First Boston Corp.,
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
including the preparation and dissemination in this judicial district of the Prospectus
shareholders of defendants Engage, which documents were materially false and misleading,
Class Period (including the trading of Engage stock based upon misleading information).
underwriter defendants conduct substantial business in this district.
Defendant The Goldman Sachs Group, Inc. (hereinafter referred to, along with its various
managing underwriter of the Engage initial public offering of 6,000,000 shares of common
In direct contravention to Rules 101 and 102 of Regulation M of the Exchange Act,
participation and agreement of Engage and the Individual Defendants.
disclose the following material facts,
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