Odimo Facing Florida Class Action Suit

Odimo Incorporated, an online retailer of high quality diamonds, fine jewelry, brand name watches and luxury goods, said it has received notice that it is being sued with a securities class action in Florida.

The notice has been filed against the company and two of its officers in Circuit Court in Broward County, Florida, on behalf of a purported class of purchasers of Odimo’s common stock. Odimo is headquartered in Sunrise, Florida.

The complaint alleges violations of federal securities laws due to allegedly false and misleading statements in Odimo's public disclosures in connection with its initial public offering.

“We firmly believe that this lawsuit is without merit and we intend to vigorously defend the company and our employees,” commented Alan Lipton, Odimo's President and CEO.

Odimo, which sells its products through three websites - diamond.com, ashford.com, and worldofwatches.com, raised $28 million in an Initial Public Offering, in February selling 3.1 million shares at $9 each.

At the lower end of the revised price, and selling fewer shares than first planned, Odimo raised nearly a third less than it originally intended.