A securities fraud class action complaint was filed against Hitsgalore.com Inc. (OTC:HITT) on behalf of shareholders who purchased or otherwise acquired their shares of Hitsgalore securities between February 17, 1999 to May 13, 1999 and suffered damages thereby.
The complaint names as defendants Hitsgalore and its CEO and president, and alleges that the company knew and failed to disclose that its founder, Dorian Reed, along with two other individuals, had been ordered to pay over $600,000 to 100 customers for "false claims made by Internet Business Broadcasting, a failed online advertising company they worked for." As a result of this disclosure, the company's stock price, which had recently skyrocketed from $1.88 a share to a high of $20.69, tumbled to $9.38 a share, for a loss of over 50% of its value in one day. On Wednesday, Reed tendered his resignation as a director of the company.
Plaintiff seeks to recover damages on behalf of all those who purchased HITT common stock during the Class Period, excluding defendants and their affiliates.

Update

On February 23, 2000, the trial court granted defendants' motion to dismiss plaintiffs' Second Amended Complaint, thereby effectively ending the case.