Milberg and Weiss are at the forefront of scores of Class Action suits, it seems it is their bread and butter. I am not happy to see one directed at NEOF for obvious reasons. At .85 a share it could get ugly quick if there is any validity to it all. Anyone have an opinion or additional information? The market has yet to react to the PR as it was released late Friday eve. Could some of that large volume on Friday be attributed to those in the know getting out? Someone posted that it was 90% institutional buying but if that info is from Thompson I-Watch then it should be held to close scrutiny. Also, that much "buying" and no movement in price....a large float is surely to play a role but c'mon.
Milberg and Weiss have "Class Action" suits pending against anybody and everybody who ever IPOd a dot com. It's surprising it took them so long to find Neoforma, as they've been breathing down Ventro's neck for months.
They really have no basis for a suit other than the performance of Neoforma's stock, but they always sue first and ask questions later. They are ambulance chasers of the most sordid sort and should be ignored entirely.
Just about every Nasdaq stock that tanked last year has one of these law suits against it. I guess it was NEOF's turn. It takes about $75 to start a lawsuit. If you join you may get a settlement for a few dollars in a few years when it is finally settled, but almost all the money will go to the lawyers. Don't be surprised if several more law firms jump on the bandwagon. The one who gets the most investors to join in wins the right to sue.