NEW YORK, Oct. 15 2004 LAWFUEL – Class action, legal, …

NEW YORK, Oct. 15 2004 LAWFUEL – Class action, legal, attorney, law firm news Wolf Haldenstein Adler Freeman & Herz
LLP filed a class action lawsuit in the United States District Court for the
Southern District of New York, on behalf of all persons who purchased or
acquired the securities of IAC/INTERACTIVECORP (“IAC” or the “Company”)
(Nasdaq: IACI) between July 16, 2001 and August 3, 2004, inclusive, (the
“Class Period”) against defendants IAC and certain officers and directors of
the Company.

The case name and index number are Stewart v. IAC/INTERACTIVECORP, et al
and 04cv7718. A copy of the complaint filed in this action is available from
the Court, or can be viewed on the Wolf Haldenstein Adler Freeman & Herz LLP
website at

The complaint alleges that defendants violated the federal securities laws
by issuing materially false and misleading statements throughout the Class
Period that had the effect of artificially inflating the market price of the
Company’s securities.

The Class Period commences on July 16, 2001 when USA Networks (“USA”),
predecessor in interests to IAC, announced plans to become, “the leader in
interactive travel” by acquiring privately held National Leisure Group and a
majority interest in publicly traded Expedia. USA announced that with these
acquisitions it would handle 16% of all online travel transactions and was
predicting 40% year over year growth. The complaint alleges that these numbers
were false and misleading because they did not account for the Company’s
improper booking of revenues and lacked a reasonable basis for the positive
statements about the Company’s true growth and progress.

The complaint also alleges that the statements made by defendants during
the class period were materially false and misleading when made because failed
to disclose or indicate the following: (1) that the Company knew or recklessly
disregarded the fact that its profits were being adversely impacted by the
decreases in available discounted inventory, such as discount hotel rooms and
airline tickets; (2) that IAC had to expend additional resources in order to
market its products and brands in the maturing Internet industry; (3) that the
favorable performance of the Expedia and the divisions were largely
dependent on the improper booking of revenue; and (4) that as a result of the
foregoing, the defendants lacked a reasonable basis for their positive
statements about the Company’s growth and progress.

If you purchased IAC securities during the Class Period, you may request
that the Court appoint you as lead plaintiff by November 19, 2004. A lead
plaintiff is a representative party that acts on behalf of other class members
in directing the litigation. In order to be appointed lead plaintiff, the
Court must determine that the class member’s claim is typical of the claims of
other class members, and that the class member will adequately represent the
class. Under certain circumstances, one or more class members may together
serve as “lead plaintiff.” Your ability to share in any recovery is not,
however, affected by the decision whether or not to serve as a lead plaintiff.
You may retain Wolf Haldenstein, or other counsel of your choice, to serve as
your counsel in this action.

Wolf Haldenstein has extensive experience in the prosecution of securities
class actions and derivative litigation in state and federal trial and
appellate courts across the country. The firm has approximately 60 attorneys
in various practice areas; and offices in Chicago, New York City, San Diego,
and West Palm Beach. The reputation and expertise of this firm in shareholder
and other class litigation has been repeatedly recognized by the courts, which
have appointed it to major positions in complex securities multi-district and
consolidated litigation.

If you wish to discuss this action or have any questions, please contact
Wolf Haldenstein Adler Freeman & Herz LLP at 270 Madison Avenue, New York, New
York 10016, by telephone at (800) 575-0735 (Fred Taylor Isquith, Esq., Gregory
M. Nespole, Esq., Gustavo Bruckner, Esq., or Derek Behnke), via e-mail at
[email protected] or visit our website at All e-mail
correspondence should make reference to IAC or InterActiveCorp.

Wolf Haldenstein Adler Freeman & Herz LLP


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