Alawsuit has been filed against Cross Media Marketing Corp. board members, alleging that the firm misrepresented its financial position.
The suit, filed Aug. 22 in U.S. District Court for the Southern District of New York, was brought by plaintiff Richard Pardo, a Cross Media shareholder in Florida. Named as defendants are Ronald Altbach, Cross Media’s CEO and chairman of the board, and seven board members.
According to Pardo’s complaint, the board downplayed the impact of a lawsuit filed against Cross Media in April by the Federal Trade Commission. The stock price fell on news of the suit and magazine orders for the second quarter dropped 20% below budget, the filing stated.
The papers quote statements by Altbach that magazine sales would make up about 50% of overall revenue in fiscal 2002. And at least one other unit engaged in
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