Ticker Symbol: BIDZ
Class Period: Aug-13-07 to Nov-26-07
Date Filed: May-7-09
Lead Plaintiff Deadline: Jul-6-09
Court: Central District of California
A class action lawsuit has been filed in the United States District Court for the Central District of California on behalf of purchasers of common stock of Bidz.com during the period between August 13, 2007 and November 26, 2007 (the "Class Period").
The complaint charges Bidz.com and its chief executive with violations of the Securities Exchange Act of 1934. Bidz.com is in the business of selling jewelry and other products online through an auction process.
The complaint alleges that during the Class Period, defendants issued a series of false and misleading statements intended to project the picture of a financially sound and well-operating company, when, in fact, the company was operating with material deficiencies and undisclosed substantial problems that went to the heart of its business model. On November 26, 2007, a Citron Research article identified numerous "red flags" and revealed previously undisclosed material problems with the Company. Two days later Citron issued a second article that provided additional details, revealing, among other things, that the Company engaged improper business tactics in order to artificially raise the auction price of its products. On this news, the Company's stock price dropped from a closing price of $19.94 on Friday, November 23, 2007, to a low of $10.10 on November 28, a loss of nearly 50%.