SOURCE: Vianale & Vianale LLP

May 18, 2005 15:55 ET

Vianale & Vianale LLP Files Securities Fraud Class Action on Behalf of FindWhat.com Securities Purchasers

BOCA RATON, FL -- (MARKET WIRE) -- May 18, 2005 -- The law firm of Vianale & Vianale LLP commenced a securities fraud class action lawsuit on May 17, 2005, in Ft. Myers, Florida federal court on behalf of purchasers of the securities of FindWhat.com (NASDAQ: FWHT) between January 5, 2004 and May 4, 2005, inclusive. View the complaint on Vianale & Vianale's website: http://www.vianalelaw.com, or call toll-free 888-657-9960.

The complaint alleges that during the Class Period, FindWhat.com and certain of its officers and directors violated federal securities laws. Specifically, with the completion of the first in a series of acquisitions by FindWhat.com, the Company began to accrue intangible assets exceeding their actual value. FindWhat.com disagreed with its auditor, Ernst & Young LLP, about the need to recognize an impairment of its goodwill in connection with FindWhat.com's 2004 financial statements. As a result of the dispute, on May 2, 2005, Ernst & Young LLP resigned and informed FindWhat.com of the following material weaknesses in its system of internal controls over financial reporting: (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, FindWhat.com announced the resignation of its CFO, Defendant Brenda Agius. While FindWhat.com's stock was artificially inflated, insiders sold 680,959 shares for proceeds of $11,320,179. On May 3, FindWhat.com stock plummeted $2.04 per share, or 26%, and an additional $2.33, or 38% on May 5, 2005.

If you bought FindWhat.com securities between January 5, 2004 and May 4, 2005, you may, no later than July 5, 2005 move the Court to appoint you as lead plaintiff, a representative party who acts on behalf of the other class members in directing the litigation. The Court will determine whether the proposed lead plaintiff's claim is typical, and whether the class member will adequately represent the class. Your ability to share in any recovery is not affected by whether or not you serve as a lead plaintiff. You may retain Vianale & Vianale LLP, or other counsel of your choice.

Vianale & Vianale LLP is active in major class action litigations pending in federal and state courts. Visit our web site (http://www.vianalelaw.com) for more information about the firm.

To discuss this action with us, or if you have any questions about this notice or your rights with regard to this case, please contact:

Contact Information

  • Contact:
    Kenneth J. Vianale, Esq.
    Julie Prag Vianale, Esq.
    2499 Glades Road, Suite 112
    Boca Raton, Florida 33431
    561-392-4750
    888-657-9960 Toll-free
    e-mail: info@vianalelaw.com