NEW YORK, April 18, 2003 (PRIMEZONE) -- Robert C. Susser, P.C. has commenced a lawsuit seeking class action status in the U.S. District Court for the District of South Dakota, Southern Division, case # 4:03cv4049, on behalf of a proposed class (the "Class") consisting of all persons who purchased securities of NorthWestern Corporation ("NorthWestern") (NYSE:NOR) between August 2, 2000 and December 13, 2002, inclusive (the "Class Period").
A copy of the Complaint is available from the court or from Robert C. Susser, P.C. Please contact the firm to discuss this action or obtain a copy of the Complaint at (212) 808-0298 or by email at ClassAction@mail.com.
The Complaint alleges that NorthWestern and certain of its executive officers violated the federal securities laws. Among other things, plaintiff claims that defendants' material omissions and materially false and misleading statements concerning NorthWestern's business operations and financial performance artificially inflated the price of NorthWestern's securities. When the truth was revealed, investors suffered damages. The complaint alleges that during the Class Period, defendants misrepresented NorthWestern's revenue and earnings by maintaining insufficient reserves for accounts receivables at NorthWestern's communications subsidiary Expanets, and by failing to make full disclosures regarding the serious problems with the implementation of a new "information technology system infrastructure." NorthWestern's problems were revealed on December 13, 2002, when the Company issued a press release disclosing that NorthWestern would dramatically miss its earnings estimates for 2002. The press release blamed the earnings shortfall on, among other things, "the need to significantly increase reserves for accounts receivable" and "billing adjustments" at Expanets. Moreover, NorthWestern's press release revealed that defendants estimated that NorthWestern would need to increase its reserves "by at least $50 million" and that financial results for 2002 could not be reported until a year-end audit was completed. On the same day as these disclosures, NorthWestern's stock plummeted 37% from the previous day's close, on higher than normal trading volume.
Plaintiff seeks to recover damages on behalf of Class members and is represented by, among other firms, Robert C. Susser, P.C., a law firm with experience litigating class actions.
If you are a member of the Class described above, you may move the Court, not later than May 23, 2003, to serve as Lead Plaintiff. However, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Robert C. Susser, Robert C. Susser, P.C., 6 East 43rd Street, New York, NY 10017, by phone at (212) 808-0298 or by e-mail to ClassAction@mail.com.
Note: Any member of the proposed class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing at this time and remain a proposed member of the class.