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DRESNER v. UTILITY.COM, INC.

No. 01 Civ. 7221(SHS).

371 F.Supp.2d 476 (2005)

Steven DRESNER and Robert Stark, Plaintiffs, v. UTILITY.COM, INC., Clearstone Venture Partners, William T. Gross, Primedia Ventures, Inc. Howard Morgan, Chris King, Paul Falchi, Michael Anderson, Timothy Morris, Ella Conrad, Joel Hayatt, Larry Phillps and Todd Springer, Defendants.

United States District Court, S.D. New York.

May 18, 2005.

Attorney(s) appearing for the Case

Samuel Howard Rudman, Steven G. Schulman, Milberg, Weiss, Bershad, Hynes & Lerach, L.L.P., New York City, for Plaintiffs.

Louis F. Burke, Louis F. Burke, P.C., Samuel L. Barkin, Heller, Ehrman, White & McAuliffe, L.L.P., Jeremy Hugh Temkin, Morvillo, Abramowitz, Grand, Iason, Silberberg, P.C., New York City, William M. Hensley, Jackson, DeMarco, Tidus & Peckenpaugh, Irvine, CA, for Defendants.

OPINION & ORDER

STEIN, District Judge.

This suit arises from a dot com deal turned sour. Plaintiffs sold their communications software company — VCOM.COM — to an internet utility provider — Utility.com — and received most of the consideration for their VCOM.COM shares in the form of Utility.com shares. Within seven months of acquiring VCOM.COM, Utility.com was liquidated, rendering its stock essentially worthless. Plaintiffs...

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