E-Commerce Stock Watch: Even More Drama at Lycos

As if things weren't complicated enough, the proposed merger between Lycos (Nasdaq: LCOS) and USA Networks (Nasdaq: USAI) has led to a lawsuit.

Law firm Milberg Weiss announced on Monday that a shareholder suit has been filed against Lycos. The complaint alleges that Lycos "issued a series of false statements which represented that Lycos was "committed to an independent strategy" when, in fact, Lycos was in serious and advanced discussions to merge with USA Networks, Inc."

The Lycos story keeps getting more interesting. Stay tuned.