On August 24, 2000, Wolf Haldenstein Adler Freeman & Herz LLP commenced a class action lawsuit in the United States District Court for the Eastern District of New York on behalf of all persons who purchased or otherwise acquired the securities of AppOnline.com, Inc. ("AppOnline" or the "Company")(AMEX: AOP; OTCBB: AOPL) between June 1, 1999 and June 30, 2000, inclusive (the "Class Period").
The Complaint was filed against certain officers and directors of AppOnline. Prior to filing for bankruptcy protection on July 19, 2000, the Company was engaged, through its subsidiaries, in the mortgage banking and mortgage brokerage services business. The Complaint alleges that defendants violated the federal securities laws by issuing false and misleading information about the Company's business, operations and financial condition, thereby causing the price of the Company's common stock to be artificially inflated throughout the Class Period. The Complaint alleges that defendants violated various banking rules and regulations.
Specifically, the complaint alleges that on May 24, 2000 Newsday reported that Island Mortgage Network, Inc. ("Island"), a subsidiary of AppOnline, was fined by the Fair Housing Administration (the "FHA") for making loans that did not comply with FHA standards and had been based on allegedly false documentation and incomplete or incorrect information. Subsequently, on June 30, 2000, New York State Banking Regulators suspended Island's mortgage banking license for allegedly making loans it could not fund and for refusing to provide regulators with access to its files. On August 14, 2000, AppOnline common stock closed at $0.08 per share, a decline of 98.5% from the Class Period high of $5.50 per share. If you wish to read the AppOnline Complaint, please click the complaint link.
Additional cases have been filed on behalf of investors. The various cases were consolidated and on March 20, 2001, Wolf Haldenstein Adler Freeman & Herz LLP was appointed Lead Counsel. A Consolidated Amended Complaint was filed on June 4, 2001. Defendants filed a motion to dismiss on July 13, 2001. Plaintiffs' opposition to the motion to dismiss was filed on August 17, 2001. Defendants' reply was filed on September 18, 2001. On December 7, 2001, the court granted defendants' motion to dismiss, but granted plaintiffs' leave to replead. On July 1, 2002, the court entered a default judgment against defendants for failure to defend the action. The case was closed on November 1, 2002.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Fred Taylor Isquith, Esq., George Peters or Derek Behnke at Wolf Haldenstein Adler Freeman & Herz LLP, 270 Madison Avenue, New York, New York 10016, by telephone at (800) 575-0735.