Milberg Weiss Announces Class Action Suit Against Hoover's Inc. and an Underwriter of its Initial Public Offering

Business Wire, Nov 15, 2001

Business Editors & Legal Writers

NEW YORK--(BUSINESS WIRE)--Nov. 15, 2001

The Plaintiffs' Executive Committee in In re: Initial Public Offering Securities Litigation, 21 MC 92 (SAS) announces that a class action lawsuit was filed on November 15, 2001, on behalf of purchasers of the securities of Hoover's Inc. ("Hoover's" or the "Company") (NASDAQ: HOOV) between July 20, 1999 and December 6, 2000, inclusive. A copy of the complaint filed in this action is available from the Court or can be obtained from the counsel listed below.

The action is pending in the United States District Court, Southern District of New York, located at 500 Pearl Street, New York, NY against defendants Hoover's, Patrick J. Spain (CEO, President and Chairman), Lynn Atchison (CFO) and underwriter Lehman Brothers Inc.

The complaint alleges violations of Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. On or about July 20, 1999, Hoover's commenced an initial public offering of 3,250,000 of its shares of common stock at an offering price of $14 per share (the "Hoover's IPO"). In connection therewith, Hoover's filed a registration statement, which incorporated a prospectus (the "Prospectus"), with the SEC. The complaint further alleges that the Prospectus was materially false and misleading because it failed to disclose, among other things, that: (i) Lehman Brothers had solicited and received excessive and undisclosed commissions from certain investors in exchange for which Lehman Brothers allocated to those investors material portions of the restricted number of Hoover's shares issued in connection with the Hoover's IPO; and (ii) Lehman Brothers had entered into agreements with customers whereby Lehman Brothers agreed to allocate Hoover's shares to those customers in the Hoover's IPO in exchange for which the customers agreed to purchase additional Hoover's shares in the aftermarket at pre-determined prices.

If you bought the securities of Hoover's between July 20, 1999 and December 6, 2000, you may, no later than January 14, 2002 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.

This action is being prosecuted by the Plaintiffs' Executive Committee of In re: Initial Public Offering Securities Litigation, 21 MC 92 (SAS). By Order, dated October 12, 2001, the Honorable Shira A. Scheindlin appointed the following firms to serve as the Plaintiffs' Executive Committee: Berstein Liebhard & Lifshitz, LLP, Milberg Weiss Bershad Hynes & Lerach LLP, Schiffrin & Barroway LLP, Sirota & Sirota LLP, Stull, Stull & Brody and Wolf Haldenstein Adler Freeman & Herz LLP. The Plaintiffs' Executive Committee has been vested by the Court with the responsibility for the prosecution of the IPO Securities Litigation.

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:

Steven G. Schulman or Samuel H. Rudman
One Pennsylvania Plaza, 49th fl.
New York, NY, 10119-0165
Phone number: (800) 320-5081
Website: http://www.milberg.com