SOURCE: Kendall Law Group, LLP

Kendall Law Group, LLP

June 16, 2009 16:09 ET

Kendall Law Group Announces Shareholders of Bidz.com Have Until July 6 to Move for Lead Plaintiff

DALLAS, TX--(Marketwire - June 16, 2009) - Kendall Law Group, led by a former Federal Judge and US Attorney, announces that a class action lawsuit was filed on behalf of purchasers of securities of Bidz.com stock (NASDAQ: BIDZ). The affected shareholders purchased stock between August 13, 2007 and November 27, 2007.

The Complaint, filed in the U.S. District Court of the Central District of California, charges Bidz.com and certain of its officers and directors with violations of the securities laws. The complaint alleges that Bidz.com failed to disclose that: (1) that the Company engaged in a practice known as "shill bidding" which artificially raised the auction price of its products; (2) that the Company was not upfront with its customers regarding "retail value" or "appraised value" of its products; (3) that the Company lacked adequate internal and financial controls; (4) that, because of those acts, the Company's financial statements were materially false and misleading; and (5) the Company's statements about its financial well-being and future business prospects were lacking in any reasonable basis when made.

On November 26, 2007, a Citron Research article appeared on the website, Stocklemon.com, which revealed a number of problems with the Company's business model. Among other things, the article exposed the Company's questionable bidding and appraisal practices. Then, on November 28, 2007, a second Citron article was published providing additional details regarding the Company's questionable bidding practices including the practice known as "shill bidding" in order to drive up the price of items up for auction. The article disclosed that certain items were bid on hundreds of times by the same few bidders.

On the negative news regarding the Company's business practices, the Company's stock dropped from a closing price of $19.94 per share on Friday, November 23, 2007, to a low of $10.10 per share on Wednesday, November 28, 2007, for a loss of nearly 50 percent on heavy trading volume.

If you are a member of the class, you may, no later than July 6, 2009, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members. If you wish to serve as a lead plaintiff, please contact attorney Hamilton Lindley at 877-744-3728 or by email at hlindley@kendalllawgroup.com.

Although Kendall Law Group has not filed a lawsuit against the defendants, the firm has tremendous experience in representing investors against companies that have committed securities fraud. For more information about this case, your rights, and Kendall Law Group please visit: www.kendalllawgroup.com or call us at 877-744-3728.