IPO Underwriter Takes A Closer Look At Search Engine Accoona and Bails Out

[mandy]

Hoping to cash in on the excitement in the markets for Internet stocks and search engines in particular, this month Accoona registered with the Securities and Exchange Commission to sell its stock to the public.

The $80.5 million initial public offering, managed by a little-known underwriter, moved forward despite the long history of Mr. Rousso, who has had several brushes with the law. He pleaded guilty to stock fraud charges in the United States in 1998 and was convicted of stock fraud in France in 1999. He has settled several suits brought by investors who claimed stock losses.

On Monday, Maxim Group, the underwriter, pulled out of the offering, though it did not cite any specific reason for its change of heart. “After completing our due diligence review, we have chosen to disassociate ourselves with the company,” said Edward L. Rose, the firm’s vice chairman and general counsel...

full article: http://www.nytimes.com/2007/08/22/techno....html?_r=1&em&ex=1188100800&en=48bad887ba36f354&ei=5087%0A&oref=slogin