Lycos hit by class action

Leading portal Lycos and its CEO Robert Davis are facing legal action for allegedly misleading investors. Three separate class action lawsuits, filed within 24 hours of each other, allege that Davis misled investors by saying that the portal intended to remain independent even though Lycos was holding discussions to merge with USA Networks. A statement issued by Boston law firm Berman DeValerio & Pease LLP said: "The action charges that Lycos and its President/CEO Robert J Davis issued materially false and misleading financial statements during the Class Period. "In particular, it is charged that Mr Davis repeatedly stated that Lycos intended to remain an independent company, despite that active, but undisclosed, negotiations were ongoing with USA Networks and its intent to acquire Lycos. "When Lycos revealed that it would be acquired by USA Networks, its stock price plunged 31 per cent in reaction to the acquisition." In a statement issued by Lycos the company said: "We believe the lawsuits filed recently to be without merit and we intend to contest against the claims vigorously." ®