The U.S. Securities and Exchange Commission filed a civil injunctive action in the United States District Court for the Southern District of New York charging six former executives of StarMedia Network, Inc. with securities fraud and two former executives with other securities law violations. StarMedia was an Internet portal directed at Spanish and Portuguese speaking communities in the United States and Latin America. It was based in New York City, and its common stock was traded on the Nasdaq National Market. On February 1, 2002, Nasdaq delisted StarMedia’s common stock. In 2002, the company undertook major asset dispositions, and in December 2003, it filed for bankruptcy protection.
It is necessary to clarify that some of Starmedia’s assets, such as the data bases, logos, brands, etc … were sold in July 2002 to Eresmas, a Spanish Internet portal that was later sold to Wanadoo, Europe’s second largest Internet company, which belongs to France Telecom.
In spite of the problems that existed in the past with the former executives of Starmedia Networks Inc., today the company and Internet portal is a new, dynamic, profitable company with a prominent position in the U.S. Hispanic market and Latin America. This new Starmedia, created in July, 2002 does not have anything to do with the management of the former team that has been charged by the SEC.
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