UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF FLORIDA
CASE NO.
MDCM HOLDINGS, INC., on behalf of itself and
others similarly situated,
Plaintiff,
-against-
CREDIT SUISSE FIRST BOSTON CORPORATION,
Defendant.
CLASS ACTION COMPLAINT
JURY TRIAL DEMAND
Plaintiff, by and through its undersigned attorneys, for its complaint alleges
following, which is based upon the investigation of its attorneys, including, among other things,
consultation with experts and a review and analysis of public filings and publicly available
information concerning industry practices in general and defendant's practices in particular,
to the pricing of, and distribution and allocation of shares issued in, initial public offerings
Jurisdiction And Venue
1. Plaintiff brings this action for common law breach of contract and
enrichment.
2. This Court has jurisdiction of this action pursuant to 28 U.S.C. §
3. Venue is proper in this District pursuant to 28 U.S.C. §§ 1391(b)
Defendant conducts business in this District, including contracting with plaintiff to underwrite and
underwriting, plaintiff's IPO. Moreover, many of the acts giving rise to the violations complained
SNIPPETS:
MDCM HOLDINGS, INC., on behalf of itself and others similarly situated,
Plaintiff, by and through its undersigned attorneys, for its complaint alleges the
to the pricing of, and distribution and allocation of shares issued in, initial public
Venue is proper in this District pursuant to 28 U.S.C. §§ 1391and
Defendant conducts business in this District, including contracting with plaintiff to
underwriting, plaintiff's IPO.
Freeman, Assignee for the Benefit of Creditors, is a Florida corporation, with its principal
place of business in this District.
MDCM's damages from the conduct complained of herein exceed $75,000.
IPO registration statement filed with the Securities and Exchange
and represented that it would resell the shares to the public at a price of $8.00 per
the principal place of business of which is in New York.
The members of the Class are so numerous that joinder of all members is
plaintiff and members of the Class sustained damages arising out of defendant's breach of
Defendants' Scheme to Obtain Excess Compensation
acts as an underwriter in the public offering of securities by issuers,
issuer and the price at which the underwriter resells the securities to public investors.
Specifically, defendant's excess compensation was obtained by, among other
the customers' profits from their IPO allocations, and allocating IPO shares to persons and
increase the profits realized by its customers of which profits a share was kicked-back to
and used the profits inherent in an underpriced IPO to curry favor with other purchasers so
Plaintiff and defendant entered into a standardized underwriting agreement
As a result of the foregoing, defendant breached both the express terms of the
breach of contract in an amount to be proven at trial.
Count II - Unjust Enrichment and Restitution
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