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VENTRO CORP CLASS ACTION LITIGATION Click to find out why . . .



Keywords & Phrases
CaseNo: VCCAL185370, CourtName: CLASS ACTION II, State: CA California, UniqueCaseRef: LCD>VCCAL185370, Ventro, Sales, Stock, Marketplace, Chemdex, Perry, Customer, Market, Growth, Verticals, Business Model, Management, Technology, Revenue, Suppliers, Officer, E-commerce, Revenues, Ventro Corporation, Life Sciences, Transactions, David, Front-office Software, Securities, Report, Sales Force, Joint Venture, Successful, Channels, Business-to-business, Fruchter, Growing, Murphy, Purchasing, Vantive Enterprise, Common Stock, Acquisition, Abrams, Sales Representatives, Distributors, Eps, Broadlane , ContentID: 120251978

Case Documents
1   COMPLAINT B 7
[ see first page and extracted highlights below  ] ItemID: 126426
42 pages
PDF
2   COMPLAINT B 6
[ see first page and extracted highlights below  ] ItemID: 126425
40 pages
PDF
3   COMPLAINT B 5
[ see first page and extracted highlights below  ] ItemID: 126424
40 pages
PDF
4   COMPLAINT B 4
[ see first page and extracted highlights below  ] ItemID: 126423
43 pages
PDF
5   COMPLAINT B 3
[ see first page and extracted highlights below  ] ItemID: 126422
40 pages
PDF
6   COMPLAINT B 2
[ see first page and extracted highlights below  ] ItemID: 126421
99 pages
PDF
7   COMPLAINT B 1
[ see first page and extracted highlights below  ] ItemID: 126420
41 pages
PDF
8   COMPLAINT A
[ see first page and extracted highlights below  ] ItemID: 126419
49 pages
PDF
Total Documents: 8 documents , 394 pages
Price: $ 54.95


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1 . COMPLAINT B 7

EXTRACTED KEY WORDS
BUSINESS
DEFENDANTS
FRUCHTER
BUSINESS MODEL
PERRY
MARKETPLACE
MARKET
CHEMDEX
REVENUES
OFFICER
VENTRO STOCK
TECHNOLOGY
SUPPLIERS
REPORT
VERTICALS
E-COMMERCE
SPECIALTY MEDICAL PRODUCTS
TRANSACTIONS
LIFE SCIENCES
DISSEMINATION
MANAGEMENT
JOINT VENTURE
PURCHASING
HEALTH CARE
HEALTHCARE
SUCCESSFUL
PROCUREMENT
MISLEADING
FEDERAL SECURITIES LAWS
 1 Kevin J. Yourman (147159)
      Jordan L. Lurie (130013)
 2 WEISS & YOURMAN
      10940 Wilshire Blvd.
 3 24th Floor
      Los Angeles, CA 90024
 4 Tel: (310) 208-2800
      Fax: (310) 209-2348
 5             - and -
      Joseph H. Weiss
 6 Mark D. Smilow
      WEISS & YOURMAN
 7 551 Fifth Avenue, Suite 1600
      New York, NY  10176
 8 Tel: (212) 682-3025
      Fax: (212) 682-3010
 9 [Additional Counsel on Signature Line]
10

11                                        UNITED STATES DISTRICT COURT
12                                      NORTHERN DISTRICT OF CALIFORNIA
13

14                                                    )
15 JUDITH FRUCHTER, , On Behalf of                          Case No.
      Herself and All Others Similarly Situated,      ))
16                                                          CLASS ACTION
                          Plaintiff,                  ))
17             vs.                                    ) COMPLAINT FOR VIOLATION OF THE
                                                      ) FEDERAL SECURITIES LAWS
18 VENTRO CORPORATION, DAVID P.
      PERRY, JAMES G. STEWART, ROBIN A. ))
19 ABRAMS, WILLIAM C. KLINTWORTH,                           DEMAND FOR JURY TRIAL
      JR., MARTHA D. GREER, DAVID A.                  ))
20 WEBER and JAMES S. WAMBACH,                        ))
21                        Defendant.                  )

22

23

24

25

26

27

SNIPPETS:
  • Fruchter v. Ventro Corp., et al.
  • the federal securities laws arising out of defendants' dissemination of false and misleading
  • statements concerning the Company's business model and its earnings for fiscal 2000.
  • 15 continued to make positive but false statements about Ventro's business and future
  • 22 the Class Period as Ventro's true prospects began to reach the market.
  • 23 registration statement to sell an additional 1.8 million shares of Ventro stock, including
  • $618 million for fiscal 2000, the resignations of its Chief Operating Officer, its Chief
  • 23 filed in March 2000, Perry filed to sell 120,000 shares of his Ventro stock.
  • marketplace for life science research products.
  • raising large sums of money, it was not successful in making money.
  • 12 is that Ventro did not possess the technology to compete.
  • 14 Tenet Healthcare with the intention of building an e-commerce platform that would
  • 25 management on a regular basis.
  • 13 Promedix for specialty medical products, Broadlane for high-volume hospital and medical
  • At the time of the offering, Ventro (then named Chemdex) referred
  • 22 to itself as a leading provider of e-commerce solutions to the life sciences industry,
  • be sold and purchased through a secure, Internet-based purchasing solution.
  • approximately 225,000 products from approximately 110 suppliers.
  • The report by Keith Benjamin and Eric Upin,
  • procurement processes in the highly fragmented specialty medical products market.
  • revenue increases are the result of transactions processed through the Company's
  • not work and the Company did not have the technology adequate to run a marketplace to satisfy
  • marketplace and procurement technologies to extend into additional verticals
  • The joint venture with Tenet, called Broadlane, had been 10 formed, which was a health care
  • model is not proven and may not be successful," but even this statement was misleading, as by

  • 2 . COMPLAINT B 6

    EXTRACTED KEY WORDS
    DEFENDANTS
    PERRY
    STOCK
    MARKETPLACE
    CHEMDEX
    MARKET
    BUSINESS
    REVENUE
    TECHNOLOGY
    OFFICER
    VERTICALS
    SUPPLIERS
    ABRAMS
    REPORT
    BROADLANE
    BUSINESS MODEL
    E-COMMERCE
    LIFE SCIENCES
    VENTRO CORPORATION
    KLINTWORTH
    TRANSACTIONS
    JOINT VENTURE
    COMMON STOCK
    SECURITIES
    SUCCESSFUL
    DAVID PERRY
    DISTRIBUTORS
    PURCHASING
    ACQUISITION
    
    
    
    
    
    
    MILBERG WEISS BERSHAD
    HYNES & LERACH LLP
    PATRICK J. COUGHLIN (111070)
    JOHN K. GRANT (169813)
    SHIRLEY H. HUANG (206854)
    100 Pine Street, Suite 2600
    San Francisco, CA 94111
    Telephone: 415/288-4545
    415/288-4534 (fax)
        - and -
    WILLIAM S. LERACH (68581)
    600 West Broadway, Suite 1800
    San Diego, CA 92101
    Telephone: 619/231-1058
    619/231-7423 (fax)
    HOFFMAN & EDELSON
    MARC H. EDELSON
    45 W. Court Street
    Doylestown, PA 18901
    Telephone: 215/230-8043
    215/230-8735 (fax)
     BOLOGNESE & ASSOCIATES, LLC
    ANTHONY J. BOLOGNESE
    2 Penn Center Plaza, Suite 200
    Philadelphia, PA 19103
    Telephone: 215/854-4057
    215/564-2013 (fax)
    
     Attorneys for Plaintiff
    
    
    
    
                                       UNITED STATES DISTRICT COURT
    
                                    NORTHERN DISTRICT OF CALIFORNIA
    
    
    JASON WILLIAMS, On Behalf of                          )  No. C-01-1962-BZ
    Himself and All Others Similarly Situated,            )  CLASS ACTION
                            Plaintiff,                    ) ) )COMPLAINT FOR VIOLATION
    
    
    
    SNIPPETS:
  • This is a securities fraud class action on behalf of persons who purchased Ventro Corporation
  • Ventro, previously called Chemdex, attempts to provide a secure Internet-based solution which
  • by the beginning of the Class Period it was evident to defendants that Ventro did not possess
  • In addition to having actual knowledge of the falsity of their statements, each of the tro's true prospects began to reach the market.
  • Ventro ultimately announced no revenue for the fourth quarter 2000, a loss of $618 million
  • The acts and transactions giving rise to the violations of law complained of occurred here.
  • Defendant David P. Perry was, during the Class Period, President, Chief Executive Officer,
  • Defendant Robin A. Abrams was, during the Class Period, Chief Operating Officer of the
  • Defendant William C. Klintworth, Jr.
  • While the Company was successful in raising large sums of money, it was not successful in
  • In December 1999, Ventro announced the establishment of Broadlane jointly with Tenet
  • At the time of the offering, Ventro referred to itself as a leading provider of e-commerce
  • We have agreements in place with additional suppliers and distributors to add approximately
  • Thus, defendants disseminated false information about Ventro's business and prospects
  • On January 21, 2000, Prudential Volpe Technology issued a report on Ventro "initiating
  • We believe that Chemdex delivers powerful and quantifiable business benefits to all
  • "Industria addresses a fragmented market that is primed for a Chemdexlike solution, creating

  • 3 . COMPLAINT B 5

    EXTRACTED KEY WORDS
    BUSINESS
    DEFENDANTS
    PERRY
    STOCK
    BUSINESS MODEL
    MARKETPLACE
    CHEMDEX
    MARKET
    REVENUE
    TECHNOLOGY
    OFFICER
    VERTICALS
    SUPPLIERS
    ABRAMS
    REPORT
    E-COMMERCE
    LIFE SCIENCES
    VENTRO CORPORATION
    KLINTWORTH
    TRANSACTIONS
    JOINT VENTURE
    COMMON STOCK
    SECURITIES
    PLAINTIFFS
    SUCCESSFUL
    DAVID PERRY
    DISTRIBUTORS
    PURCHASING
    ACQUISITION
    
    
    
    
    MILBERG WEISS BERSHAD
    HYNES & LERACH LLP
    PATRICK J. COUGHLIN (111070)
    JOHN K. GRANT (169813)
    SHIRLEY H. HUANG (206854)
    100 Pine Street, Suite 2600
    San Francisco, CA 94111
    Telephone: 415/288-4545
    415/288-4534 (fax)
        - and -
    WILLIAM S. LERACH (68581)
    600 West Broadway, Suite 1800
    San Diego, CA 92101
    Telephone: 619/231-1058
    619/231-7423 (fax)
    LAW OFFICES OF LEO W.
    DESMOND
    LEO W. DESMOND
    2161 Palm Beach Lake Blvd.
    Suite 204
    West Palm Beach, FL 33409
    Telephone: 561/712-8000
    561/712-8002 (fax)
    
    Attorneys for Plaintiffs
    
    
    
    
                                       UNITED STATES DISTRICT COURT
    
                                   NORTHERN DISTRICT OF CALIFORNIA
    
    
    YU J.B. ZHANG and SUMIN QI, On                    )  No. C-01-1952-CW
    Behalf of Themselves and All Others               )
    Similarly Situated,                               )  CLASS ACTION
                            Plaintiffs,               ) )  COMPLAINT FOR VIOLATION
                                                            OF THE FEDERAL SECURITIES
        vs.                                           ) )  LAWS
    VENTRO CORPORATION, DAVID P.                      )
                                                      )
    PERRY, JAMES G. STEWART, ROBIN A.
                                                      )
    ABRAMS, WILLIAM C. KLINTWORTH,   )
    
    SNIPPETS:
  • PERRY, JAMES G. STEWART, ROBIN A.
  • This is a securities fraud class action on behalf of persons who purchased Ventro Corporation
  • Ventro, previously called Chemdex, attempts to provide a secure Internet-based solution which
  • by the beginning of the Class Period it was evident to defendants that Ventro did not possess
  • In addition to having actual knowledge of the falsity of their statements, each of the tro's true prospects began to reach the market.
  • By this time Ventro's stock had declined to less than $2 per share, inflicting billions of
  • Ventro ultimately announced no revenue for the fourth quarter 2000, a loss of $618 million
  • The acts and transactions giving rise to the violations of law complained of occurred here.
  • Defendant Robin A. Abrams was, during the Class Period, Chief Operating Officer of the
  • Defendant William C. Klintworth, Jr.
  • While the Company was successful in raising large sums of money, it was not successful in
  • In December 1999, Ventro announced the establishment of Broadlane jointly with Tenet
  • At the time of the offering, Ventro referred to itself as a leading provider of e-commerce
  • We have agreements in place with additional suppliers and distributors to add approximately
  • Thus, defendants disseminated false information about Ventro's business and prospects
  • On January 21, 2000, Prudential Volpe Technology issued a report on Ventro "initiating
  • We believe that Chemdex delivers powerful and quantifiable business benefits to all
  • "Industria addresses a fragmented market that is primed for a Chemdexlike solution, creating

  • 4 . COMPLAINT B 4

    EXTRACTED KEY WORDS
    CHEMDEX
    MARKETPLACE
    BUSINESS
    PERRY
    VERTICALS
    DEFENDANTS
    BUSINESS MODEL
    DAVID
    MARKET
    BUSINESS-TO-BUSINESS
    REVENUE
    TECHNOLOGY
    SUPPLIERS
    E-COMMERCE
    PLATFORM
    VENTRO CORPORATION
    SPECIALTY MEDICAL PRODUCTS
    LIFE SCIENCES
    TRANSACTIONS
    PUBLICLY TRADED SECURITIES
    ACQUISITION
    TENET HEALTHCARE
    PROCUREMENT
    JOINT VENTURE
    PURCHASING
    SUCCESSFUL
    MEDICAL SUPPLIES
    SUPPLY CHAIN
    DISTRIBUTORS
    
    
    
    
    MILBERG WEISS BERSHAD
    HYNES & LERACH LLP
    PATRICK J. COUGHLIN (111070)
    JOHN K. GRANT (169813)
    SHIRLEY H. HUANG (206854)
    100 Pine Street, Suite 2600
    San Francisco, CA 94111
    Telephone: 415/288-4545
    415/288-4534 (fax)
        - and -
    WILLIAM S. LERACH (68581)
    600 West Broadway, Suite 1800
    San Diego, CA 92101
    Telephone: 619/231-1058
    619/231-7423 (fax)
    Attorneys for Plaintiff
    
    
    
    
                                       UNITED STATES DISTRICT COURT
    
                                    NORTHERN DISTRICT OF CALIFORNIA
    
    
    SAMUEL KENNA, On Behalf of                        )  No. C-01-1790-JL
    Himself and All Others Similarly                  )
    Situated,                                         )  CLASS ACTION
                            Plaintiff,                ) )  COMPLAINT FOR VIOLATION
                                                            OF THE FEDERAL SECURITIES
        vs.                                           ) )  LAWS
    VENTRO CORPORATION, DAVID P.   )
                                                      )
    PERRY, JAMES G. STEWART, ROBIN
                                                      )
    A. ABRAMS, WILLIAM C.                             )
    KLINTWORTH, JR., MARTHA D.                        )
    GREER, DAVID A. WEBER and JAMES  )
    S. WAMBACH,                                       )
                                                      )
                                                      )
                            Defendants.               )
    ___________________________________  DEMAND FOR JURY TRIAL
                                            SUMMARY OF THE ACTION
    
    
    SNIPPETS:
  • VENTRO CORPORATION, DAVID P.)
  • PERRY, JAMES G. STEWART, ROBIN
  • Ventro builds and operates platforms for vertical business-to-business ecommerce marketplace
  • Ventro, previously called Chemdex, attempts to provide a secure Internet-based solution which
  • defendants knew that Ventro's existing business model did not work and that the Company did
  • In addition to having actual knowledge of the falsity of their statements, each of the tro's true prospects began to reach the market.
  • Ventro ultimately announced no revenue for the fourth quarter 2000, a loss of $618 million
  • The acts and transactions giving rise to the violations of law complained of occurred here.
  • Plaintiff Samuel Kenna purchased the publicly traded securities of Ventro as detailed in the
  • Ventro went public in July 1999 under the name Chemdex, offering an on-line marketplace for
  • While the Company was successful in raising large sums of money, it was not successful in
  • one reason the model did not work is that Ventro did not possess the technology to compete.
  • In December 1999, Ventro announced the establishment of Broadlane jointly with Tenet
  • During early 2000, defendants were engaged in preparing a huge $250 million subordinated note
  • At the time of the offering, Ventro referred to itself as a leading provider of e-commerce
  • We have agreements in place with additional suppliers and distributors to add approximately
  • On September 22, 1999, Chemdex announced the acquisition of Promedix.com.
  • organizations recognize the value that a Web-based procurement solution
  • "The new company will streamline the process of bringing the healthcare supply chain online
  • Thus, defendants disseminated false information about Ventro's business and prospects
  • We believe that Chemdex delivers powerful and quantifiable business benefits to all

  • 5 . COMPLAINT B 3

    EXTRACTED KEY WORDS
    BUSINESS
    DEFENDANTS
    VERTICALS
    STOCK
    BUSINESS MODEL
    MARKETPLACE
    CHEMDEX
    MARKET
    DAVID
    REVENUE
    TECHNOLOGY
    OFFICER
    PERRY
    BUSINESS-TO-BUSINESS
    SUPPLIERS
    VENTRO CORPORATION
    E-COMMERCE
    LIFE SCIENCES
    TRANSACTIONS
    JOINT VENTURE
    COMMON STOCK
    SECURITIES
    CLASS ACTION
    SUCCESSFUL
    DISTRIBUTORS
    PURCHASING
    ACQUISITION
    MEDICAL SUPPLIES
    PARTNERSHIPS
    
    
    
    
    MILBERG WEISS BERSHAD
    HYNES & LERACH LLP
    PATRICK J. COUGHLIN (111070)
    JOHN K. GRANT (169813)
    SHIRLEY H. HUANG (206854)
    100 Pine Street, Suite 2600
    San Francisco, CA 94111
    Telephone: 415/288-4545
    415/288-4534 (fax)
        - and -
    WILLIAM S. LERACH (68581)
    600 West Broadway, Suite 1800
    San Diego, CA 92101
    Telephone: 619/231-1058
    619/231-7423 (fax)
    LAW OFFICES OF MARC S. HENZEL
    MARC S. HENZEL
    210 West Washington Square
    Third Floor
    Philadelphia, PA 19106-3503
    Telephone: 215/625-9999
    215/440-9475 (fax)
    
    Attorneys for Plaintiff
    
    
    
    
                                       UNITED STATES DISTRICT COURT
    
                                    NORTHERN DISTRICT OF CALIFORNIA
    
    
    LEE CRISWELL, On Behalf of                      )  No. C-01-20376-RS
    Himself and All Others Similarly Situated,      )  CLASS ACTION
                            Plaintiff,              ) )  COMPLAINT FOR VIOLATION
        vs.                                         ) )  OF THE FEDERAL SECURITIES
    VENTRO CORPORATION, DAVID P.  )  LAWS
                                                    )
    PERRY, JAMES G. STEWART,
                                                    )
    ROBIN
                                                    )
    A. ABRAMS, WILLIAM C.                           )
    KLINTWORTH, JR., MARTHA D.                      )
    
    SNIPPETS:
  • VENTRO CORPORATION, DAVID P.) LAWS
  • This is a securities fraud class action on behalf of persons who purchased Ventro Corporation
  • Ventro builds and operates platforms for vertical business-to-business ecommerce marketplace
  • Ventro, previously called Chemdex, attempts to provide a secure Internet-based solution which
  • by the beginning of the Class Period it was evident to defendants that Ventro did not possess
  • In addition to having actual knowledge of the falsity of their statements, each of the tro's true prospects began to reach the market.
  • Ventro ultimately announced no revenue for the fourth quarter 2000, a loss of $618 million
  • The acts and transactions giving rise to the violations of law complained of occurred here.
  • Pursuant to a Registration Statement filed in March 2000, Perry filed to sell 120,000 shares
  • While the Company was successful in raising large sums of money, it was not successful in
  • In December 1999, Ventro announced the establishment of Broadlane jointly with Tenet
  • During early 2000, defendants were engaged in preparing a huge $250 million subordinated note
  • At the time of the offering, Ventro referred to itself as a leading provider of e-commerce
  • We have agreements in place with additional suppliers and distributors to add approximately
  • Thus, defendants disseminated false information about Ventro's business and prospects
  • We believe that Chemdex delivers powerful and quantifiable business benefits to all
  • In expanding, Chemdex will provide its new companies with a significant edge in time to

  • 6 . COMPLAINT B 2

    EXTRACTED KEY WORDS
    CUSTOMER
    STOCK
    GROWTH
    MANAGEMENT
    MURPHY
    MARKET
    FRONT-OFFICE SOFTWARE
    REVENUES
    SALES FORCE
    CHANNELS
    DEFENDANTS
    EARNINGS
    GROWING
    SIPPL
    BUSINESS
    VANTIVE ENTERPRISE
    AUTOMATION
    SALES REPRESENTATIVES
    EPS
    VANTIVE CORPORATION
    SECURITIES
    SALES-FORCE AUTOMATION
    INDIVIDUAL DEFENDANTS
    CONFERENCE
    EXECUTION PROBLEMS
    EXECUTIVES
    EXPERIENCED SALES
    COMPETITORS
    PRODUCTIVITY
    
    
    
    WOLF HALDENSTEIN ADLER FREEMAN
         & HERZ LLP
    FRANCIS M. GREGOREK (144785)
    Symphony Towers
    750 B Street, Suite 2770
    San Diego, CA 92101
    Telephone: 619/239-4599
             -and-
    GREGORY NESPOLE
    270 Madison Avenue
    New York, NY 10016
    Telephone: 212/545-4600
    
    Attorneys for Plaintiff
    
                              UNITED STATES DISTRICT COURT
    
                             NORTHERN DISTRICT OF CALIFORNIA
    
    PARK EAST, INC, On Behalf of Itself            ) Case No. C99-3403 (WHO)
    and All Others Similarly Situated,             )) CLASS ACTION
                           Plaintiff,              ))
             vs.                                   ) FIRST AMENDED COMPLAINT
                                                   ) FOR VIOLATION OF THE
    THE VANTIVE CORPORATION, JOHN R.               ) SECURITIES EXCHANGE ACT
    LUONGO, JOHN M. JACK, KATHLEEN A.              ) OF 1934
    MURPHY, CHRISTOPHER W. LOCHHEAD, ROGER )
    J. SIPPL, DAVID J. JODOIN, and MICHAEL )
    M. LOO,                                        ))
                           Defendants.             ) PLAINTIFF DEMANDS A TRIAL
    _______________________________________) BY JURY
    
                                INTRODUCTION AND OVERVIEW
    
             1.       This is a securities class action on behalf of purchasers
    
    of The Vantive Corporation ("Vantive" or the "Company") stock
    
    between 4/23/97 and 7/6/98 (the "Class Period"). Vantive sells and
    
    services customer relationship management software (front-office
    
    software) including the Vantive Enterprise which is an integrated
    
    software suite to enable field personnel to deliver customer
    
    
    SNIPPETS:
  • MURPHY, CHRISTOPHER W. LOCHHEAD, ROGER)
  • J. SIPPL, DAVID J. JODOIN, and MICHAEL)
  • This is a securities class action on behalf of purchasers
  • services customer relationship management software (front-office
  • growing provider of front-office software.
  • Vantive's rapid sales and earnings growth (Vantive's sales
  • Vantive's stock price increased to above $35 per share by late
  • performance of Vantive's direct sales force,
  • forecasted increasing revenues and EPS for 1998 and 1999.
  • defendants began their fraudulent scheme and course of business,
  • executives during 1994-96.
  • restore their credibility and to show that Vantive's competitors'
  • Vantive's expansion of its sales force and distribution channels
  • and strong growth in the front-office software market.
  • management stated that Vantive's strong 4thQ 97 would be followed
  • its strong 1stQ 97 results and upbeat conference call,
  • due to the Individual Defendants'
  • The sales representatives that the Company hired
  • Vantive's experienced sales reps were performing
  • call-center support while the Company attempted to enter the salesforce automation market
  • The ineptness and execution problems of Vantive's
  • its sales productivity problems by forcing it to hire more new and
  • Vantive's flagship, Vantive Enterprise), growth in Vantive's
  • The Vantive Corporation today
  • * Vantive was building its sales-force automation business and would replace Aurum as the No.

  • 7 . COMPLAINT B 1

    EXTRACTED KEY WORDS
    STOCK
    MARKETPLACE
    CHEMDEX
    MARKET
    BUSINESS
    REVENUE
    TECHNOLOGY
    DEFENDANTS
    OFFICER
    VERTICALS
    PERRY
    SUPPLIERS
    REPORT
    BROADLANE
    INDUSTRY
    BUSINESS MODEL
    E-COMMERCE
    LIFE SCIENCES
    VENTRO CORPORATION
    TRANSACTIONS
    JOINT VENTURE
    COMMON STOCK
    SECURITIES
    SUCCESSFUL
    DAVID PERRY
    DISTRIBUTORS
    PURCHASING
    ACQUISITION
    MEDICAL SUPPLIES
    
    
    
    
    
    
    MILBERG WEISS BERSHAD
    HYNES & LERACH LLP
    REED R. KATHREIN (139304)
    100 Pine Street, Suite 2600
    San Francisco, CA 94111
    Telephone: 415/288-4545
    415/288-4534 (fax)
        - and -
    WILLIAM S. LERACH (68581)
    DARREN J. ROBBINS (168593)
    600 West Broadway, Suite 1800
    San Diego, CA 92101
    Telephone: 619/231-1058
    619/231-7423 (fax)
    BERNSTEIN LIEBHARD & LIFSHITZ, LLP
    MICHAEL S. EGAN
    10 East 40th Street
    New York, NY 10016
    Telephone: 212/779-1414
    212/779-3218 (fax)
    
    SCHIFFRIN & BARROWAY, LLP
    MARC A. TOPAZ
    Three Bala Plaza East, Suite 400
    Bala Cynwyd, PA 19004
    Telephone: 610/667-7706
    610/667-7056 (fax)
    
    CAULEY, GELLER, BOWMAN
    & COATES, LLP
    PAUL J. GELLER
    One Boca Place, Suite 421A
    2255 Glades Road
    Boca Raton, FL 33431
    Telephone: 561/750-3000
    561/750-3364 (fax)
    
     Attorneys for Plaintiffs
    
                                     UNITED STATES DISTRICT COURT
    
                                 NORTHERN DISTRICT OF CALIFORNIA
    
    
    SNIPPETS:
  • This is a securities fraud class action on behalf of persons who purchased Ventro Corporation
  • Ventro, previously called Chemdex, attempts to provide a secure Internet-based solution which
  • by the beginning of the Class Period it was evident to defendants that Ventro did not possess
  • In addition to having actual knowledge of the falsity of their statements, each of the tro's true prospects began to reach the market.
  • Ventro ultimately announced no revenue for the fourth quarter 2000, a loss of $618 million
  • The acts and transactions giving rise to the violations of law complained of occurred here.
  • Pursuant to a Registration Statement filed in March 2000, Perry filed to sell 120,000 shares
  • While the Company was successful in raising large sums of money, it was not successful in
  • In December 1999, Ventro announced the establishment of Broadlane jointly with Tenet
  • During early 2000, defendants were engaged in preparing a huge $250 million subordinated note
  • At the time of the offering, Ventro referred to itself as a leading provider of e-commerce
  • We have agreements in place with additional suppliers and distributors to add approximately
  • Thus, defendants disseminated false information about Ventro's business and prospects
  • On January 21, 2000, Prudential Volpe Technology issued a report on Ventro "initiating
  • We believe that Chemdex delivers powerful and quantifiable business benefits to all
  • "Industria addresses a fragmented market that is primed for a Chemdexlike solution, creating

  • 8 . COMPLAINT A

    EXTRACTED KEY WORDS
    CUSTOMER
    GROWTH
    STOCK
    MANAGEMENT
    MARKET
    REVENUES
    SALES FORCE
    FRONT-OFFICE SOFTWARE
    CHANNELS
    DEFENDANTS
    GROWING
    BUSINESS
    SALES REPRESENTATIVES
    VANTIVE ENTERPRISE
    ANALYSTS
    SALES-FORCE AUTOMATION
    EPS
    VANTIVE CORPORATION
    SUCCESSFUL
    DIRECT SALES
    COMPETITORS
    PRODUCTIVITY
    SECURITIES
    INDIVIDUAL DEFENDANTS
    ANALYSTS ISSUED REPORTS
    EXECUTIVES
    GROWTH RATE
    CUSTOMER SUPPORT
    EXPERIENCED SALES
    
    
    
    MILBERG WEISS BERSHAD
    HYNES & LERACH LLP
    WILLIAM S. LERACH (68581)
    ALAN SCHULMAN (128661)
    DARREN J. ROBBINS (168593)
    EDWARD P. DIETRICH (176118)
    600 West Broadway, Suite 1800
    San Diego, CA 92101
    Telephone: 619/231-1058
        - and -
    REED R. KATHREIN (139304)
    222 Kearny Street, 10th Floor
    San Francisco, CA 94108
    Telephone: 415/288-4545
    Attorneys for Plaintiff
    
    [Additional counsel appear on signature page.]
    
    
    
                                       UNITED STATES DISTRICT COURT
    
                                    NORTHERN DISTRICT OF CALIFORNIA
    
    
    KEN WEBB On Behalf of Himself and All                   )  No. C-99-3248-WHO
    Others Similarly Situated,                              )
                             Plaintiff,                     ) ) CLASS ACTION
    
        vs.                                                 ) ) COMPLAINT FOR
    THE VANTIVE CORPORATION, JOHN R.                        ) ) VIOLATION
    LUONGO, JOHN M. JACK, KATHLEEN A.                       )  OF THE SECURITIES
    MURPHY, CHRISTOPHER W. LOCHHEAD,                        )  EXCHANGE ACT OF 1934
    ROGER J. SIPPL, DAVID J. JODOIN and                     )
    MICHAEL M. LOO,                                         ) )
                            Defendants.                     )
                                                            )
    ___________________________________________ DEMAND FOR JURY TRIAL
    
    
                                       INTRODUCTION AND OVERVIEW
    
    
    
    
    
    
    SNIPPETS:
  • This is a securities class action on behalf of purchasers of The Vantive Corporation stock
  • Vantive sells and services customer relationship management software (front-office software)
  • Vantive went public in 8/95 at $6per share as a rapidly growing provider of frontoffice
  • As a result of Vantive's rapid sales and earnings growth, Vantive's stock price increased to
  • However in April 1997, Vantive's stock price dropped precipitously to as low as $14-3/4 per
  • Thus, beginning in 4/97, defendants made false and misleading statements about Vantive's
  • Vantive also forecast increasing revenues and EPS for 1998 and 1999.
  • Vantive's stock fell to as low as $11-3/4 on 7/8/99, a 25% two-day decline on huge volume of
  • Vantive's stock collapse greatly reduced the value of shares and/or options to purchase
  • Defendants knew analysts and the investment community would focus on Vantive's 1stQ F97
  • On 4/23/97, Vantive reported better-than-expected 1stQ 97 EPS of $.10, attributing those
  • As Vantive's stock soared higher to artificially inflated levels during the Class Period, due
  • Vantive neglected its core market in customer and call-center support while the Company
  • While Vantive hired large numbers of additional sales representatives to make it appear that expenses or by adversely impacting its revenues;
  • Vantive could not attract and retain qualified sales representatives and merely increased
  • Because of the problems Vantive was encountering in its business, it had begun to experience
  • Moreover, in the customer support market, average transaction size is a key financial
  • ï Vantive was gaining market share with a 50% growth rate and would have nearly 12% of the
  • The following analysts issued reports forecasting Vantive's EPS and growth rate and rating
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