PHILADELPHIA, Nov. 15, 2001 (PRIMEZONE) -- The law firm of Berger & Montague, P.C., (http://www.bergermontague.com) filed a class action suit on behalf of an investor against Enron Corp. (``Enron'' or the ``Company'') (NYSE:ENE) and its principal officers and directors in the United States District Court for the Southern District of Texas on behalf of all persons or entities who purchased Enron securities during the period from March 30, 2000 through and including October 18, 2001, inclusive (the ``Class Period''). It is expected that the class period will be extended to include the period from January 18, 1999 through November 8, 2001.
The complaint alleges that Enron and its principal officers and directors violated Section 10(b) and 20 (a) of the Securities Exchange Act of l934 and SEC Rule 10b-5. The complaint alleges that defendants misled investors (1) by reporting assets that were overvalued by more than $1 billion, which caused writedowns in that amount and are expected to lead to further writeoffs of hundreds of millions of dollars, (2) by concealing facts regarding relationships with a related entity that led to a more than $1 billion reduction of shareholders' equity and a $35 million charge, and (3) by failing to disclose the fact that agreements with other related entities satisfaction of which, include obligations that may require the Company to issue large amounts of its shares. This misconduct caused the market prices of Enron stock to be artificially inflated during the Class Period. When facts about these matters were disclosed at the end of the Class Period, the market price of the Company's stock fell from a high of $90 per share during the Class Period to a low of $15 per share, and securities analysts downgraded their ratings of the Company's stock despite the precipitous fall in its market price. Also, Enron's senior debt was placed on notice by Moody's for possible downgrade. In addition, the three individual defendants, all top executives at Enron collectively sold over 100 million dollars of their personal holdings of Enron stock during the class period.
Also, an SEC inquiry into the Company's transactions with related entities has been announced, and the Company revealed that its Chief Financial Officer, who is one of the Defendants, has taken a ``leave of absence'' from the Company, and has been replaced. If you purchased Enron securities during the period from January 18, 1998 through November 8, 2001, inclusive, you may, no later than December 21, 2001 move to be appointed as a Lead Plaintiff. A Lead Plaintiff is a representative party that acts on behalf of other class members in directing the litigation. The Private Securities Litigation Reform Act of 1995 directs Courts to assume that the class member(s) with the ``largest financial interest'' in the outcome of the case will best serve the class in this capacity. Courts have discretion in determining which class members(s) have the ``largest financial interest,'' and have appointed Lead Plaintiffs with substantial losses in both absolute terms and as a percentage of their net worth. If you have sustained substantial losses in Enron securities during the Class Period, please contact Berger & Montague, P.C. at investorprotect@bm.net for a more thorough explanation of the Lead Plaintiff selection process.
The law firm of Berger & Montague, P.C. has more than 50 attorneys, all of whom represent plaintiffs in complex litigation. The Berger firm has extensive experience representing plaintiffs in class action securities litigation and has played lead roles in major cases over the past 25 years, which have resulted in recoveries of several billion dollars to investors. The firm is currently representing investors as lead counsel in actions against Rite Aid, Sotheby's, Waste Management, Inc., Sunbeam, Boston Chicken and IKON Office Solutions, Inc. The standing of Berger & Montague, P.C. in successfully conducting major securities and antitrust litigation has been recognized by numerous courts. For example:
`Class counsel did a remarkable job in representing the class interests.`` In Re: IKON Offices Solutions Securities Litigation. Civil Action No. 98-4286(E.D.Pa.) (partial settlement for $111 million approved May, 2000).
``...[Y]ou have acted the way lawyers at their best ought to act. And I have had a lot of cases...in 15 years now as a judge and I cannot recall a significant case where I felt people were better represented than they are here ... I would say this has been the best representation that I have seen.`` In Re: Waste Management, Inc. Securities Litigation, Civil Action No. 97-C 7709 (N.D. Ill.) (settled in 1999 for $220 million).
If you purchased Enron securities during the Class Period, or have any questions concerning this notice or your rights with respect to this matter, please contact:
Sherrie R. Savett, Esquire
Carole A. Broderick, Esquire
Arthur Stock, Esquire
Kimberly A. Walker, Investor Relations Manager
Berger & Montague, P.C.
1622 Locust Street
Philadelphia, PA 19103
Phone: 888-891-2289 or 215-875-3000
Fax: 215-875-5715
Website: http://www.bergermontague.com
e-mail: InvestorProtect@bm.net
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.