NEW YORK, March 1, 2002 (PRIMEZONE) -- A class action complaint has been filed in the United States District Court for the Southern District of Texas, civil action number H-02-0764, on behalf of all persons or entities who purchased Hanover Compressor Company. ("Hanover" or the "Company") common stock (NYSE:HC) between November 8, 2000 through January 28, 2002, both dates inclusive (the "Class Period"). Hanover Compressor Company, Michael J. McGhan, William S. Goldberg and Michael A. O'Connor are named as defendants in the action.
The Complaint alleges that defendants violated Section 10(b) of the Securities and Exchange Act of 1934 by issuing a series of materially false and misleading statements about the Company's financial results announced during the Class Period. Hanover, which performs natural gas compression services for oil and gas companies, and three of its top executives misled the investing public during the Class Period concerning the Company's investment in a joint venture to build and operate a natural gas processing plant in Nigeria. Specifically, it is alleged that Hanover improperly recognized revenue associated with the joint venture when the project was years from completion. In addition to such violations of Generally Accepted Accounting Principles, Hanover is alleged to have issued shares in a secondary offering at grossly inflated prices. On January 28, 2002, Hanover reported that it had booked millions in revenue and earnings in connection with the Nigerian project and that its Board of Directors had begun a review of "the transactions of this joint venture and the related accounting." By that date, Hanover's shares had fallen below $15.00 per share.
Plaintiff is represented by the law firm of Rabin & Peckel LLP. Rabin & Peckel LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States. You can learn more information about Rabin & Peckel at www.rabinlaw.com.
If you purchased Hanover common stock during the Class Period described above, you may, no later than April 5, 2002, move the Court to serve as lead plaintiff. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this action as a lead plaintiff online at www.rabinlaw.com. If you wish to discuss this action further or have any questions concerning this announcement, or your rights or interests, please contact plaintiff's counsel, Eric Belfi or Maurice Pesso, Rabin & Peckel LLP, 275 Madison Avenue, New York, NY 10016, by telephone at (800) 497-8076 or (212) 682-1818, by facsimile at (212) 682-1892, or by e-mail at email@rabinlaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.