UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
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DOUGLAS DYDO, on behalf :
of himself and all others : 01-CV-7084 (SAS)
similarly situated, :
:
Plaintiff, : CLASS ACTION COMPLAINT
:
-against- :
:
RHYTHMS NETCONNECTIONS, INC., :
CATHERINE M. HAPKA, SCOTT C. :
CHANDLER, MERRILL LYNCH, PIERCE, : JURY TRIAL DEMANDED
FENNER & SMITH, INCORPORATED, :
SALOMON SMITH BARNEY, INC. and :
FLEETBOSTON ROBERTSON STEPHENS, :
INC., :
:
Defendants. :
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Plaintiff, by and through his attorneys, as and
for his Class Action Complaint, alleges upon personal
knowledge as to his own acts and as to all other matters
upon information and belief based upon, inter alia, the
investigation made by and through his attorneys, which
investigation included, among other things, a review of
reports filed by Rhythms NetConnections, Inc. ("Rhythms" or
the "Company") with the Securities and Exchange Commission
or disseminated to Rhythms' shareholders (including without
SNIPPETS:
UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK
Plaintiff,: CLASS ACTION COMPLAINT
CHANDLER, MERRILL LYNCH, PIERCE,: JURY TRIAL DEMANDED
reports filed by Rhythms NetConnections,
the "Company") with the Securities and Exchange Commission
or disseminated to Rhythms' shareholders (including without
collectively herein as the "IPO Prospectus");
Prospectus and Registration Statement dated August 11,
12 and 15 of the Securities Act of
including the preparation and dissemination
materially false and misleading, during the Class Period
In addition, underwriter Merrill
other wrongs complained of herein, the defendants, directly
through its involvement in the IPO and Secondary Offering
purchasers of the Company's stock, including plaintiff, the
do so caused the price of Rhythms common stock to be
The Individual Defendants, because of their
otherwise acquired the common stock of Rhythms from the
been actively traded during the Class Period on the NASDAQ
and/or misrepresented material facts about the Rhythms IPO,
and the underwriting discounts and commissions,
additional Rhythms shares in the aftermarket at predetermined prices that were above the IPO
transactions in Rhythms securities.
regarding violations of NASD rules connected with the sale
Regulation S-K, Item 501required Rhythms to disclose
or participation in the making of such statements
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