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AP Wire | 06/30/2003 | Investors Can't Force Idealab Liquidation: "Posted on Mon, Jun. 30, 2003
Posted on Mon, Jun. 30, 2003
Investors Can't Force Idealab Liquidation
Associated Press
LOS ANGELES - An attempt by investors to force the liquidation of Internet business incubator Idealab has failed, although a judge will allow plaintiffs to seek the removal of two board members, including founder Bill Gross.
The decision by a Superior Court judge is a blow to the attempt by high-profile investors, including Dell Computer's venture capital arm and T. Rowe Price, to force the once high-flying dot-com company to distribute whatever assets are left.
The plaintiffs are convinced Idealab is doomed to fail and want the company to refund hundreds of millions of dollars. The investors behind the suit poured $712 million into Idealab near the height of the Internet frenzy in early 2000.
Gross and the rest of Idealab's board are determined to keep the six-year-old incubator alive, contending the high-tech startups under development will pay hefty dividends down the road.
The plaintiffs filed new charges against Idealab last July, painting Gross and his wife - Idealab's president, Marcia Goodstein - as irresponsible executives looting the company to support a comfortable lifestyle. The suit also claimed that Idealab helped boost the investments of a prominent director in 2000.
Gross has denied the allegations, describing them as the sour grapes of greedy investors unwilling to adjust to the turbulent market conditions facing high-tech companies.
On Friday, Los Angeles County Superior Court Judge Charles W. McCoy said the investors lack the one-third ownership of the company's common stock required to pursue the liquid assets. He also dismissed claims of breach of contract and deceit by concealment.
"We are evaluating our options and intend to proceed full-bore," said Skip Miller, lead attorney for the investors.
Through a spokeswoman, Gross said he was "excited that the most important parts of the lawsuit were thrown out."
Posted on Mon, Jun. 30, 2003
Investors Can't Force Idealab Liquidation
Associated Press
LOS ANGELES - An attempt by investors to force the liquidation of Internet business incubator Idealab has failed, although a judge will allow plaintiffs to seek the removal of two board members, including founder Bill Gross.
The decision by a Superior Court judge is a blow to the attempt by high-profile investors, including Dell Computer's venture capital arm and T. Rowe Price, to force the once high-flying dot-com company to distribute whatever assets are left.
The plaintiffs are convinced Idealab is doomed to fail and want the company to refund hundreds of millions of dollars. The investors behind the suit poured $712 million into Idealab near the height of the Internet frenzy in early 2000.
Gross and the rest of Idealab's board are determined to keep the six-year-old incubator alive, contending the high-tech startups under development will pay hefty dividends down the road.
The plaintiffs filed new charges against Idealab last July, painting Gross and his wife - Idealab's president, Marcia Goodstein - as irresponsible executives looting the company to support a comfortable lifestyle. The suit also claimed that Idealab helped boost the investments of a prominent director in 2000.
Gross has denied the allegations, describing them as the sour grapes of greedy investors unwilling to adjust to the turbulent market conditions facing high-tech companies.
On Friday, Los Angeles County Superior Court Judge Charles W. McCoy said the investors lack the one-third ownership of the company's common stock required to pursue the liquid assets. He also dismissed claims of breach of contract and deceit by concealment.
"We are evaluating our options and intend to proceed full-bore," said Skip Miller, lead attorney for the investors.
Through a spokeswoman, Gross said he was "excited that the most important parts of the lawsuit were thrown out."
Tuesday, July 01, 2003 :: posted by TSC team @ 5:37 PM
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