Class Action Lawsuit Filed Against Autobytel
BALA CYNWYD, Penn. - A class action suit has been filed against Autobytel on behalf of its shareholders by law firm Schiffrin & Barroway, LLP. In a statement released by the firm, Autobytel, Lehman Brothers, Inc., Bear, Stearns & Co., Inc., Goldman, Sachs & Co., Morgan Stanley & Co., and Salomon Smith Barney, Inc. were named as defendants in a case surrounding Autobytel's initial public offering of 4,500,000 shares of stock.
According to the statement released by Schiffrin & Barroway, their complaint alleges that undisclosed arrangements between Autobytel and certain invenstors made the prospectus, a part of the registration statement with the SEC, "materially false and misleading." The complaint charges that defendants "solicited and received excessive and undisclosed commissions from certain investors" in exchange for "material portions of the restricted number of Autobytel shares issued in connection with the Autobytel IPO."
The statement also reports that the SEC is currently investigating underwriting practices in connection with several other initial public offerings, as alleged by the Schiffrin & Barroway complaint.
Shiffrin & Barroway has experience prosecuting class actions on behalf of investors and shareholders.
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