AutoMall Online Files Suit Against Auto-By-Tel and Montgomery Securities
10 September 1997
AutoMall Online Files Suit Against Auto-By-Tel and Montgomery SecuritiesVIENNA, Va., Sept. 9 -- AutoMall Online, Incorporated, an Internet provider of automobile buying services, today filed suit against Auto-By-Tel Corporation, Peter Ellis, co-founder and president of Auto-By-Tel, Montgomery Securities, and Jordan Hymowitz, a former automobile analyst for Montgomery Securities, in the United States District Court for the Eastern District of Virginia (Civ. Action No. 97-1413-A). The complaint alleges that Auto-By-Tel, an AutoMall competitor, and Ellis conspired with Montgomery Securities and Hymowitz to steal AutoMall's business plan and trade secrets, and to unlawfully interfere with AutoMall's contracts and business expectancies. The complaint alleges that the purposes of the conspiracy were to cripple AutoMall and position Auto-By-Tel for a public offering by Montgomery Securities. Although the public offering, which was intended to raise in excess of $33 million, was withdrawn, Auto-By-Tel was able to raise $24 million in a private offering. AutoMall is seeking damages, including treble damages and punitive damages, for the fraud perpetrated against it and the harm done to its business by the defendants. AutoMall is a Virginia corporation with offices in Vienna, Virginia. Auto-By-Tel is a Delaware corporation, with its principal place of business in Irvine, California. Montgomery Securities is a privately held investment bank with its principal office in San Francisco, California. For copies of the complaint or other inquiries, please contact AutoMall's attorneys, Arthur M. Schwartzstein, P.C. at 703-749-2300, or The Stoppelman Law Firm, P.C. at 703-827-7450. SOURCE AutoMall Online, Incorporated