Bidz.com Responds to Class Action Lawsuit
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Bidz.com Believes Plaintiffs' Legal Claims Are Entirely without Merit
and Intends to Defend the Action Vigorously
CULVER CITY, Calif., May 11, 2009 (BUSINESS WIRE) -- Bidz.com (NASDAQ: BIDZ), a leading online retailer of jewelry, will
defend aggressively a lawsuit filed by Ramon Gomez in the United States
District Court, Central District of California, against Bidz.com and its
Chairman and Chief Executive Officer, David Zinberg. The complaint was
filed as a purported class action on behalf of all purchasers of the
common stock of Bidz.com between August 13, 2007 to November 26, 2007.
The plaintiff's allegations are solely based on a report published by
Citron Research on November 26, 2007. After issuing the report, Citron
Research, previously known as StockLemon.com, publicly acknowledged that
it held a short position in the common stock of Bidz.com, Inc. The
Company has publicly refuted all the claims made in the report.
The Complaint is another in a series of allegations against Bidz.com in
the aftermath of the Citron Report, including complaints made to the
Securities and Exchange Commission and the Federal Trade Commission.
Bidz.com has previously disclosed the investigation by the Securities
and Exchange Commission and has recently received a Civil Investigative
Demand for information from the Federal Trade Commission relating to
email marketing practices. Bidz.com is cooperating and responding to
these investigations.
Bidz.com believes the plaintiffs' claims are entirely without merit and
intends to defend the action vigorously.
About Bidz.com Bidz.com, founded in 1998, is a leading online retailer of jewelry. Bidz
offers its products through a live auction format as well as a fixed
price online retail store, Buyz.com. Bidz.com's auctions are also
available in Arabic, German and Spanish. To learn more about Bidz.com
visit its website at www.bidz.com.
Safe Harbor Statement This press release includes forward-looking statements about the
Company's estimated revenue and earnings within the meaning of the
Private Securities Litigation Reform Act of 1995. All statements other
than statements of historical facts contained in this release, including
statements regarding the Company's future financial position, business
strategy and plans and objectives of management for future operations,
are forward-looking statements. The words "believe," "may," "will,"
"estimate," "continue," "anticipate," "intend," "expect," and similar
expressions, as they relate to the Company, are intended to identify
forward-looking statements. We have based these forward-looking
statements largely on current expectations and projections about future
events and financial trends that we believe may affect the Company's
financial condition, results of operations, business strategy and
financial needs. Risks and uncertainties include that our common stock
is subject to short selling and trading, and prices of our stock may be
volatile; that we are subject to "prank" bidding; that we may face
increasing costs to acquire new customers; the ability of the Company to
attract customers to its website and offer attractive products; the
ability to maintain profit levels while expanding international sales;
the ability to detect fraud if we fail to maintain an effective system
of internal controls; the ability to maintain our website, electronic
data processing systems, and systems hardware; the ability to forecast
accurately net revenue and plan for expenses; that we do not have a
guaranteed supply of jewelry products and that we have a heavy
concentration of inventory purchase from our top two suppliers; the
ability to protect our intellectual property rights; and potential
litigation and government enforcement actions that may result from our
prior securities offerings. Please refer to Bidz.com's reports and
filings with the Securities and Exchange Commission for a further
discussion of these risks and uncertainties. Readers are cautioned not
to place undue reliance on forward-looking statements, which speak only
as of the date they are made. Bidz.com undertakes no obligation to
update publicly any forward-looking statements to reflect new
information, events or circumstances after the date they were made or to
reflect the occurrence of unanticipated events.
SOURCE: Bidz.com
IR Contact:
Addo Communications, Inc.
Andrew Greenebaum, 310-829-5400
andrewg@addocommunications.com
Copyright Business Wire 2009
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