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A patent infringement suit filed against PayPal Inc. this week haspushed back the pricing for the online payment company’s planned initialpublic offering, according to Dow Jones Newswires. Palo Alto, Calif.-based PayPal was expected to price its $76 millionoffering Feb. 6. The 5.4 million shares, with an over-allotment optionof 810,000 additional shares, were expected to price between $12 and $14per share. PayPal’s underwriter, Citigroup Inc.’s Salomon Smith Barney, told DowJones that the timing of the offering is now unclear. New York-based rival Certco Inc. filed its suit against PayPal in theU.S. District Court of Delaware in Wilmington on Feb. 4. Certco,which is represented by Delaware’s Blank, Rome, Comisky & McCauley inthe suit, has not set any cash demands in the filing but claims thatPayPal infringed its 2000 patent by providing electronic paymentservices for online auction systems. PayPal’s services have gained popularity through their use on sites likeeBay, the online auctioneer. The delay in pricing will give PayPal time to re-file its offering withthe Securities and Exchange Commission to reflect the lawsuit, reportedDow Jones. PayPal made its initial filing in September. Information on the Certco lawsuit would most likely be added to the”Risks” section of the filing, which so far includes a warning all toofamiliar to dot-com investors: “To date, we have never achieved aprofitable quarter.” In its latest quarter, the company reported an $18.5 million loss,narrowed from a $41.9 million loss in the same quarter a year ago. PayPal, which plans to use the offering’s proceeds to support itstransaction processing activities, capital expenditures and othergeneral corporate purposes, expects to use the symbol “PYPL” on theNasdaq National Market. Copyright �2002 TDD, LLC. All rights reserved.

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