14 DAY TRIAL // The giant portal Yahoo is again sent to the court because Lerach Coughlin, a famous law company, filed a complaint against the Sunnyvale firm for violations of the Securities Exchange Act of 1934. In other words, the complaint sustains that Yahoo offered incorrect information about the search advertising platform that is currently one of the most important solutions for numerous advertisers and publishers on the Internet.
"The complaint alleges that Yahoo!'s stock rose precipitously on defendants' positive statements concerning Yahoo!'s sales growth, record reported revenues and earnings and strong business fundamentals, which defendants stated would provide further stability and growth, reaching a Class Period high of over $43 per share on January 6, 2006," it is mentioned in a press release published by the law firm.
OK, so Yahoo is involved in a lawsuit filed by one of the most famous law companies that is also involved in several other federal problems with worldwide names. Now, there is only one question: is Yahoo able to revamp the service if the judge rules that the giant portal really infringed the Securities Exchange Act of 1934?
Yahoo was quite avoided by lawsuits and by other complaints sent to the judge, because the company decided to work in silence and target the same category of users. The last lawsuit concerning the giant portal was filed by the Belgian newspapers that accused Yahoo of copyright infringement after the company published several headlines on its news service. The same publications were accusing Google for a similar problem sustaining the search giant published their titles without authorization. In both instances, the Belgian publications won the cases after the judge ruled that the two companies should remove their headlines from the news services and avoid future indexing of the information.
If you want to view the entire complaint filed by the law company, you should click on this link and open it in the PDF format.