Bidz: Plaintiffs' Claims “Entirely without Merit”

Bidz.com announced it will “aggressively” defend itself against a proposed class action lawsuit on behalf of all purchasers of its common stock between August 13 and November 26, 2007.

Ramon Gomez filled the lawsuit in the United States District Court of Central District of California against Bidz.com and its Chairman and CEO, David Zinberg. The complaint was filed as a purported class action on behalf of all purchasers of the common stock of Bidz.com

“The plaintiff's allegations are solely based on a report published by Citron Research on November 26, 2007,” Bidz said in a statement Monday. “After issuing the report, Citron Research, previously known as StockLemon.com, publicly acknowledged that it held a short position in the common stock of Bidz.com, Inc. The Company has publicly refuted all the claims made in the report.

“The Complaint is another in a series of allegations against Bidz.com in the aftermath of the Citron Report, including complaints made to the Securities and Exchange Commission and the Federal Trade Commission. Bidz.com has previously disclosed the investigation by the Securities and Exchange Commission and has recently received a Civil Investigative Demand for information from the Federal Trade Commission relating to email marketing practices. Bidz.com is cooperating and responding to these investigations.

Bidz.com believes the plaintiffs' claims are entirely without merit and intends to defend the action vigorously.“