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AutoMall Online Files Suit Against Auto-By-Tel and Montgomery Securities

10 September 1997

AutoMall Online Files Suit Against Auto-By-Tel and Montgomery Securities

    VIENNA, 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intended to raise in excess of $33 million, was withdrawn, Auto-By-Tel was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