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eToys.com is a retail website that sells toys via the Internet. Emarketer was once quoted as saying; "Put simply, eToys is the benchmark against which all other toy sites are measured."[citation needed] Like so many other "Dot-com" companies, the company that owned the eToys site filed for chapter 11 protection toward the end of the internet bubble on March 7, 2001.
Unlike many CEOs of the time, when eToys finally did expire CEO Toby Lenk went down with it still holding 10 million shares. Lenk also prevailed upon his senior team to follow his example, by not selling their shares, hoping to save eToys by signaling confidence to Wall Street.
Nearly all the eToys assets were acquired by KB Toys in two separate bankruptcy auctions, then later sold to D.E. Shaw, a New York based hedge fund. Just prior to its final sale, lawyers on behalf of eToys filed a lawsuit in New York Supreme Court against Goldman Sachs for multiple securities violations. The suit, still pending a decision, is estimated at being worth up to $800 million.[citation needed] Coupled with that, a shareholders group began privately investigating suspected wrongdoings by certain individuals and law firms overseeing the bankruptcy case. This group continues to pursue the matter in Federal Court.
The Wall Street Journal printed an article on the saga of issues that the shareholders and a Court approved consultant, Collateral Logistics Inc (CLI) owned by Steven Haas (a/k/a Laser Haas) that can be found read at the Where's Justice for All website on Fraud eToys.
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