Lerach Coughlin Stoia Geller Rudman & Robbins LLP Announces Class Action Suit Against Intermix Media, Inc

Business Wire, Sept 1, 2005

SAN DIEGO -- On August 26, 2005, Lerach Coughlin Stoia Geller Rudman & Robbins LLP ("Lerach Coughlin") filed a class action lawsuit in the Superior Court of the State of California, County of Los Angeles, against members of the Board of Directors of Intermix Media, Inc., formerly known as eUniverse, Inc. ("Intermix" or the "Company") (AMEX:MIX), and its controlling shareholder VantagePoint Partners in connection with their efforts to sell Intermix to News Corp. pursuant to a Merger Agreement that was timed, negotiated and structured in violation of defendants' fiduciary duties.

Specifically, the complaint alleges that instead of complying with their fiduciary duty to maximize shareholder value for Intermix's public shareholders, defendants instead have structured the proposed acquisition so that Intermix's public shareholders receive just $12 per share, while tens of millions of dollars are being diverted in the form of: (i) premium payments to Intermix's controlling shareholder for its illiquid block of convertible preferred shares; (ii) the acceleration of unvested options held by defendants; and (iii) the potential elimination of millions of dollars of liability arising out of defendants' prior misconduct through a merger designed to wrest Intermix shareholders of standing to maintain derivative litigation against defendants and a "deeper pocket" to indemnify them, all in exchange for agreeing to a fire sale of Intermix.

The complaint further charges that defendants' prior misconduct, which arose out of a series of false financial statements filed with the Securities and Exchange Commission ("SEC") between July 30, 2002 and May 5, 2003, resulted in the Company being forced to restate its financial results for three quarters in the fiscal year ended March 31, 2003, exposing it to millions of dollars in potential liabilities. As a result, the Company was investigated by the SEC and delisted by the NASDAQ as a result of its failure to provide necessary financial information to the market in a timely manner. The complaint alleges that as a direct result of this illegal course of conduct, the Company became the target of multiple lawsuits, alleging, among other things, (i) that the Company had materially overstated its net income and earnings per share; (ii) that the Company lacked adequate internal controls and was therefore unable to ascertain the true financial condition of the Company; and (iii) that as a result, the value of the Company's net income and financial results were materially overstated at certain relevant times.

The plaintiff is represented by Lerach Coughlin, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, William Lerach or Darren Robbins of Lerach Coughlin at 800-449-4900 or 619-231-1058, or via e-mail at wsl@lerachlaw.com.

Lerach Coughlin, a 150-lawyer firm with offices in San Diego, San Francisco, Los Angeles, New York, Boca Raton, Washington, D.C., Houston, Philadelphia and Seattle, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. Lerach Coughlin lawyers have been responsible for more than $20 billion in aggregate recoveries. The Lerach Coughlin Web site (http://www.lerachlaw.com) has more information about the firm.