Infotopia (fka IFTA)

[thepennyking]

Summary: According to a Press Release dated August 23, 2001, the complaint alleges that the plaintiffs were induced through a series of false and misleading statements made by the company's senior management between June and September 2000 to exercise warrants to purchase Infotopia stock. The stockholders exercised their warrants in mid-September by surrendering promissory notes issued by Infotopia that provided for the return of principal within 270 days together with 10% interest. The stockholders claim that they relied on statements by Hoyng and other officers and directors that the Torso Tiger sales will continue for many years to come and that earnings of 20 cents per share could be safely projected for this fiscal year. In fact, according to the complaint, Infotopia discontinued the sale of this product as of December 31, 2000 and the company reported a loss of over $16 million dollars for the three months ending November 30, 2000 and a loss of over $26 million for the ten months ended December 31, 2000. Other false and misleading statements alleged in the complaint relate to an announced Letter of Agreement for a $20 million financing package that was characterized in an August 4, 2000 press release as a real home run for our company. In a letter to the shareholders on September 28, 2000 Hoyng disclosed that the Letter of Agreement was in fact only a letter of intent that never materialized into any financing for Infotopia. The stockholders further assert that the false and misleading statements had the effect of causing the stock price to rise from 12 cents per share on August 23, 2000 to $1.12 per share on September 12, 2000. Several of the insiders sold hundreds of thousands of shares through September 20 realizing substantial profits. The suing stockholders' stock was not registered by the company until over a month later when the stock price had dropped to the 20 cent per share range. Adjusted for a recent 200:1 reverse split, the stock is currently trading at less than a half a cent per share.

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INDUSTRY CLASSIFICATION:
SIC Code: 2833
Sector: Consumer Cyclical
Industry: Recreational Products



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COMPANY/ISSUER NAME: Infotopia, Inc.
COMPANY/ISSUER TICKER: IFTA
COMPANY WEBSITE: http://www.infotopia.com

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FIRST IDENTIFIED COMPLAINT IN THE DATABASE
Anelle, et al. v. Infotopia, Inc., et al.
COURT: N.D. Ohio DOCKET NUMBER:
JUDGE NAME:
DATE FILED: 08/23/2001 SOURCE: Business Wires
CLASS PERIOD START: 06/01/2000 CLASS PERIOD END: 09/29/2000
TYPE OF COMPLAINT: Unamended/Unconsolidated
PLAINTIFF FIRMS IN THIS OR SIMILAR CASE:
Goodkind Labaton Rudoff & Sucharow LLP
100 Park Avenue, New York, NY, 10017
(voice) 212.907.0700, (fax) 212.818.0477, [e-mail]
Hahn, Loeser & Parks
1050 Fifth Third Center 21 East State Street, Columbus, OH, 43215-4224
(voice) 614.221.0240, (fax) 614.221.5909,
_____________________________________________
TOTAL NUMBER OF PLAINTIFF FIRMS: 2



DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT
Class Action Complaint
Type: Complaint Date on the document: 08/23/2001

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http://securities.stanford.edu/1020/IFTA01/