Internet Capital Group was hit with a class-action lawsuit alleging that the holding company issued false and misleading statements tied to its business and financial conditions. In the suit, shareholders of ICG said the company delivered "materially" false information in connection with its initial public offering, law firm Schiffrin & Barroway said in a statement. ICG, which went public in August of 1999, holds a majority of its investments in business-to-business ventures.
The suit, filed in the U.S. District Court for the southern district of New York, says the IPO prospectus the company provided at the time was misleading because it did not disclose material information including items related to the way shares were being allocated. The suit pertains to purchasers of the company's common stock from Aug. 4, 1999 through Dec. 6, 2000.