NEW YORK, April 19, 2002 (PRIMEZONE) -- A class action complaint has been filed in the United States District Court for the Northern District of California, case number C-02-1884 (JF), on behalf of all persons or entities who purchased Calpine Corporation ("Calpine" or the "Company") securities (NYSE:CPN) from February 6, 2001 through December 13, 2001, both dates inclusive (the "Class Period").
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 Sharon Lee, 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.
The complaint charges Calpine and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. Calpine acquires, develops, owns, and operates power generation facilities, as well as sells electricity in the United States to a utility or other third-party user. Calpine also produces thermal energy for industrial customers. The complaint alleges that during the Class Period, defendants were motivated to inflate the value of Calpine stock so that the Company could complete a $2.6 billion debt offering, and to enable top officers and directors of Calpine to sell their Calpine shares under favorable market conditions. During the Class Period, defendants inflated the Company's earnings before interest, tax, depreciation and amortization ("EBITDA") by adding back various Company expenses, and burying the truth in confusing footnotes in various company SEC filings and press releases. Despite a warning from the SEC that this practice was misleading to investors, defendants continued to report Calpine's EBITDA in such terms.
The Individual Defendants (all of whom were top officers and directors of the Company) and the Company's controlling shareholder took advantage of the inflation, selling or disposing of 835,314 shares of Calpine securities during the Class Period for proceeds of over $34,909,181. The Complaint alleges that as a result of defendants' false and misleading statements the price of Calpine securities was artificially inflated throughout the Class Period, causing plaintiff and the other members of the Class to suffer damages.
Plaintiff is represented by the law firm of Rabin & Peckel LLP. Rabin & Peckel 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 Calpine securities during the Class Period described above, you may, no later than May 10, 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.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca