NEW YORK, April 3, 2002 (PRIMEZONE) -- Shareholders who purchased NewPower Holdings, Inc. (NYSE:NPW) ("New Power" or the "Company") securities during the class period (October 5, 2000 through December 5, 2001) have until April 29, 2002 to file a petition with the court to become lead plaintiff in an Enron-related securities class action.
A lawsuit filed March 21, 2002 in the United States District Court for the Southern District of New York seeks damages for violations of federal securities laws on behalf of all investors who purchased NewPower securities during the class period.
This action charges NewPower, certain of its officers and directors, and the underwriters of its October 5, 2000 Offering with issuing false and misleading statements concerning NewPower's business and financial condition in order to protect and enrich Enron, NewPower's controlling shareholder, at the expense of other shareholders. In particular, as alleged, the Registration Statement and Prospectus for NewPower's Offering materially misrepresented the adequacy of the risk management systems put in place in conjunction with NewPower affiliate, Enron Energy Services, Inc. ("EES"), and the true nature and purpose of certain related-party transactions, including transactions pursuant to which Enron attempted to hedge its investment in NewPower through use of a partnership known as "Raptor III." In addition, it is alleged that defendants misrepresented or failed to disclose: (i) that the Company had not adopted effective and appropriate hedging strategies against volatility of commodity prices; (ii) that the Company was on course to achieve its financial goals and had sufficient liquidity to do so; and (iii) that certain forward contracts with EES posed little risk of loss when in truth and in fact they were driving the Company toward insolvency, and were largely structured to protect and enrich Enron, NewPower's controlling shareholder. The Complaint alleges that as a result of these false and misleading statements the price of NewPower common stock was artificially inflated throughout the Class Period causing plaintiff and the other members of the Class to suffer damages.
If you purchased NewPower common stock from October 5, 2000 to December 21, 2001, you may, no later than April 29, 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.