FWHT Findwhat.Com (MM)

The Law Office of Peter A. Lagorio Announces the Filing of a Class Action Suit Against FindWhat.com and Certain of its Officers and Directors on Behalf of Investors BOSTON, May 19 /PRNewswire/ -- The Law Office of Peter A. Lagorio announces that a class action lawsuit has been filed on behalf of purchasers of the securities of FindWhat.com (the "Company") (NASDAQ:FWHT) between January 5, 2004 and May 4, 2005 inclusive, (the "Class Period"), seeking to pursue remedies under the Securities Exchange Act of 1934 (the "Exchange Act"). The action is pending in the United States District Court for the Middle District of Florida against defendants FindWhat.com, Craig Pisaris-Henderson, Brenda Aguis, Frederick E. Guest, and Phillip R. Thune. The Complaint alleges that Defendants issued, or caused to be issued, false and misleading statements during the Class Period to artificially inflate the value of FindWhat.com stock. Beginning on January 5, 2004, with the completion of the first in a series of mergers and acquisitions by the Company in 2004, the Company begin to accrue intangible assets in excess of their actual value. In violation of Generally Accepted Accounting Principals ("GAAP"), the Company disagreed with its outside auditor, Ernst & Young LLP, with respect to the need to recognize an impairment of its goodwill in connection with the Company's 2004 consolidated financial statements. As a result of the dispute, on May 2, 2005, Ernst & Young LLP resigned. Ernst & Young LLP also informed the Company of six material weaknesses in the Company's system of internal control over financial reporting, and these matters relate to (i) purchase accounting, (ii) goodwill impairment, (iii) revenue recognition for private label agreements and other revenue agreements, excluding those related to FindWhat.com Network revenue, (iv) personnel resources and technical accounting expertise, (v) quarterly and year-end financial statement close and review process, and (vi) segregation of duties. On May 4, 2005, the Company surprised the market with the announcement of the resignation of its CFO, Defendant Brenda Aguis. During the class period, Defendants and other Company insiders knew, or recklessly disregarded the Company's inadequate internal control problems to facilitate the false impression of financial success to investors. While Defendants had misled the investing public and inflated the value of FindWhat.com's stock during the class period, insiders sold 680,959 shares for personal proceeds of $11,320.179. Immediately following both of these disclosures, the Company's stock plummeted, losing $2.04 per share, or 26% of its value on May 3 and an additional $2.33 per share, or an astonishing 38% on May 5, 2005. If you bought the securities of FindWhat.com between January 5, 2004 and May 4, 2005 and sustained damages, you may, no later than July 5, 2005, request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain the Law Office of Peter A. Lagorio, or other counsel of your choice, to serve as your counsel in this action. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following attorneys: Peter A. Lagorio, Esq. Lynda M. Carey, Esq. Law Office of Peter Lagorio 63 Atlantic Ave Boston, MA 02110 (617) 367-4200 DATASOURCE: Law Office of Peter A. Lagorio CONTACT: Peter A. Lagorio, Esq. or Lynda M. Carey, Esq. both of Law Office of Peter Lagorio, +1-617-367-4200,

Copyright