UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
SETH WEIZEL, on behalf of himself and all others
similarly situated, CIVIL ACTION NO.
Plaintiff, CLASS ACTION COMPLAINT
v. FOR VIOLATIONS OF FEDERAL
SECURITIES LAWS
USINTERNETWORKING, INC.;
CHRISTOPHER R. MCCLEARY; STEPHEN E. JURY TRIAL DEMANDED
MCMANUS; ANDREW A. STERN; CREDIT
SUISSE FIRST BOSTON CORP.; THE BEAR
STEARNS COMPANIES INC.; DEUTSCHE
BANC ALEX. BROWN INCORPORATED;
FLEETBOSTON ROBERTSON STEPHENS,
INC; CIBC WORLD MARKETS; THE
GOLDMAN SACHS GROUP, INC.; and J.P.
MORGAN CHASE & CO.,
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 USinternetworking, Inc.
("USinternetworking" or the "Company") with the Securities and Exchange Commission, as well as,
conferences, press releases, news articles, analyst reports, and media reports concerning the
Furthermore, this complaint is based upon plaintiff's personal knowledge as to plaintiff and
acts, and upon information and belief as to all other matters, based upon the aforementioned
NATURE OF THE ACTION
1. This is a class action on behalf of all persons, other than defendants and certain
parties, who purchased, converted, exchanged or otherwise acquired USinternetworking common stock,
as defined below, including, but not limited to, during the period from April 8, 1999 through
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
malfeasance by major Wall Street securities firms. As reported in national news sources such as
York Times, The Wall Street Journal, and Fortune Magazine, prosecutors in New York and
SNIPPETS:
UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK
BROWN INCORPORATED; FLEETBOSTON ROBERTSON STEPHENS,
which included, inter alia, a review of relevant filings made by USinternetworking, Inc.
with the Securities and Exchange Commission, as well as, teleconferences, press releases,
this complaint is based upon plaintiff's personal knowledge as to plaintiff and plaintiff's
This is a class action on behalf of all persons, other than defendants and certain related
2000 to recover damages caused by defendants' violations of the federal securities
malfeasance by major Wall Street securities firms.
enforcement officials at the Securities and Exchange Commission are examining at least two
investment banks charged issuers of new securities excessive commissions and inflated
Second, investigators are examining, and have evidence, that major investment banks
allocated shares of especially hot initial public offerings to favored,
for promises by these customers that they would purchase additional shares of the IPOs in the
of the investigation is defendant investment bank Credit Suisse First Boston Corp.,
the IPO boom include Morgan Stanley Dean Witter and Goldman Sachs Groups,
and maintain the price of the IPOs in the aftermarket once the initial distribution period
stock price, above the offering price, and create a false sense of demand that would attract
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
defendants USinternetworking, which documents were materially false and misleading, during
Period (including the trading of USinternetworking stock based upon misleading information).
the underwriter defendants conduct substantial business in this district.
managing underwriter of the USinternetworking initial public offering of 6,000,000 shares of
The Goldman Sachs Group, Inc., as successor in interests to Goldman, Sachs &
USinternetworking's common stock has been actively traded during the Class Period on
In direct contravention to Rules 101 and 102 of Regulation M of the Exchange Act,
with direct participation and agreement of USinternetworking and the Individual Defendants.
disclose the following material facts,
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