UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
BART LLOYD, on behalf of himself and all others :
similarly situated, :: Index No.
Plaintiff, :: CLASS ACTION COMPLAINT
FOR VIOLATIONS OF THE
vs. :: FEDERAL SECURITIES
LAWS
BEAR STEARNS & CO, INC., LEHMAN :
BROTHERS, INC. and BANCBOSTON :
ROBERTSON STEPHENS, INC. ::
Defendants. :::
Plaintiff, by his undersigned attorneys, individually and on behalf of the Class described
below, upon information and belief, based upon, inter alia, the investigation of counsel, which
includes, among other things, a review of public announcements made by defendants, Securities
and Exchange Commission ("SEC") filings made by defendants, and press releases, and media
reports, except as to the paragraph applicable to the named plaintiff which is alleged upon
personal knowledge, brings this Complaint (the "Complaint") against the defendants named
herein, and alleges as follows:
SUMMARY OF ACTION
1. This is a securities class action alleging that the Registration Statement dated June
23, 1999 and the Prospectus dated June 29, 1999 for the issuance and initial public offering of
6,000,000 shares of Digital Island, Inc. ("Digital Island" or the "Company") common stock,
contained material misrepresentations and/or omissions. The Registration Statement and
Prospectus are referred to herein collectively as the "Prospectus."
2. Digital Island describes itself as offering a global network and related services
companies that are using the Internet to deploy key business applications worldwide. Digital
Island's services are intended to make it easier for companies to globalize their operations and
offer better service and more functions than on the public Internet. Its principal place of
SNIPPETS:
Plaintiff, by his undersigned attorneys, individually and on behalf of the Class described
includes, among other things, a review of public announcements made by defendants, Securities
and Exchange Commission filings made by defendants, and press releases, and media
This is a securities class action alleging that the Registration Statement dated June
6,000,000 shares of Digital Island, Inc. common stock,
contained material misrepresentations and/or omissions.
Prospectus are referred to herein collectively as the "Prospectus."
Digital Island describes itself as offering a global network and related services for
extract inflated commissions greater than those disclosed in the Offering materials,
of the Securities Exchange Act of 1934,
Plaintiff Bart Lloyd purchased shares of Digital Island during the Class Period.
Defendant Bear Stearns & Co., Inc. was, at all relevant times
a registered broker-dealer and member of the NASD.
This is our initial public offering.
The underwriters may purchase up to an additional 900,000 shares of common stock from us at
make huge profits by reselling the shares at much higher prices in the aftermarket.
commissions on transactions in Digital Island securities that otherwise would have been left
payment by certain investors of extra-large, undisclosed "kickbacks" for allocations in
The NASD is examining IPO allocation practices at several securities firms, including
fund manager testified before a United States District Court for the Southern District of New
Regulation S-K specifically governs the forepart of the Registration Statement and outside
untrue statements of material fact and/or omitted to state material facts necessary to make
Such defendants' material misrepresentations and/or omissions were done
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