eSpeed, Inc. NASD: ESPD

A class action lawsuit in the United States District Court for the Southern District of New York on behalf of all purchasers who, from August 12, 2003 to July 1, 2004, purchased eSpeed, Inc. (Nasdaq:ESPD) securities. The lawsuit, which alleges violations of sections 10(b) and 20(a) of the Securities and Exchange Act of 1934 was filed against eSpeed, Inc. ("eSpeed" or "the Company"), its top executives, Howard Lutnick and Lee Amaitis, and eSpeed's controlling shareholders.

The Complaint alleges that during the Class Period (August 12, 2003 to July 1, 2004), the defendants touted eSpeed as an unmitigated success story, a company which had achieved record revenues and earnings and, most importantly, a company that had established its infrastructure and business model as an unqualified success in the high volume automated trading of government securities and foreign exchange. In repeated press releases, the defendants represented that the eSpeed business model was in place and performing as anticipated. The true facts were that the business model was not working, and eSpeed was losing market share to its principle competitor, ICAP Plc, and its BrokerTec division. In fact, eSpeed did not have a viable business model. This was revealed on July 1, 2004 when defendants were forced to admit that revenues, earnings and market share were decreasing, that its business plan was not working, that it was being forced to develop a new business plan and pricing structure, and its competitive efforts with respect to ICAP were not successful. In the two trading days following this announcement, eSpeed shares dropped more than $6 per share on trading volume of over 9 million shares, a loss in market value for the Company of almost $350 million. As a result of the materially false positive statements made during the Class Period, class members purchased eSpeed shares at inflated prices, and as a result were damaged thereby.

If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.