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Zapata investors sue over Internet; class-action suits claim company inflated plans to build cyber-empire.(Zapata Corp)
Investors across the country have filed more than a dozen class-action lawsuits against Houston-based Zapata Corp. alleging the fish oil producer's plans to build an Internet empire were fishy from beginning to end.
The lawsuits, filed in Houston federal court, claim that Zapata and CEO Avram Glazer artificially inflated the price of the company's stock during a four-month publicity blitz when the company claimed to be acquiring numerous Internet businesses.
In company press releases and filings with the Securities and Exchange Commission, Glazer asserted Zapata would become "one of the largest Internet companies in the world."
The suits allege that …
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