CHICAGO, May 10, 2002 (PRIMEZONE) -- Much Shelist Freed Denenberg Ament & Rubenstein, P.C. announces that a class action lawsuit is pending in the United States District Court for the Northern District of Illinois on behalf of purchasers of the securities of Exelon Corporation ("Exelon" or the "Company") (NYSE:EXC) between April 24, 2001 and September 27, 2001, inclusive ("Class Period").
It has been alleged that Exelon, Corbin A. McNeill, Jr., Exelon's co-CEO and Chairman, John W. Rowe, Exelon's co-CEO and President, and Ruth Ann Gillis, Exelon's CFO, violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of materially false and misleading statements to the market. According to the allegations, Exelon repeatedly issued statements concerning the strength of its operations and repeatedly assured the market that it would meet or beat its $4.50 per share earnings figure for 2001.
Specifically, it has been alleged that Defendants' statements were materially false and misleading because they failed to disclose, among other things:
(a) that the investments in telecommunications companies held by
Exelon's Enterprises segment were plummeting in value at a rapid
pace. Accordingly, Enterprises could not and would not
meaningfully contribute to the Company's results and, in fact,
the Company was carrying tens of millions of dollars of impaired
investments on its financial statements; and
(b) that InfraSource, Exelon's infrastructure subsidiary, was
experiencing declining demand for its products as its primary
customers, telecommunications companies, were facing severe
industry-wide problems, such as mounting debt and over-capacity,
and were significantly cutting back on their capital
expenditures.
On September 27, 2001, Exelon issued a press release and announced that it would not meet its earnings commitment of $4.50 for 2001. Exelon blamed its shortfall on the economy, poor weather and write-downs for failed investments made by the Enterprises unit. In reaction to the announcement, Exelon's common stock price plunged by 22%, falling to a low of $38.85 per share on September 27, 2001, after closing at $50.45 the previous day, on extremely heavy trading volume.
Much Shelist is currently investigating these claims. If you wish to discuss your rights and interests, or if you have information relevant to the lawsuit, you may contact Carol V. Gilden or Michael E. Moskovitz at Much Shelist Freed Denenberg Ament & Rubenstein, P.C., by calling a toll-free number 1-800-470-6824, or by sending an e-mail to investorhelp@muchlaw.com. Your e-mail should refer to Exelon.
If you purchased Exelon securities during the Class Period and if you meet certain other legal requirements, you may file a motion in the court where the lawsuit has been filed to serve as a lead plaintiff. You must file your motion no later than July 8, 2002.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. The requirements for serving as a lead plaintiff are set forth in the Private Securities Litigation Reform Act of 1995 (15 U.S.C. Section 78u-4).
Much Shelist's history is one of experience, leadership and results. For more than 25 years, Much Shelist has represented plaintiffs in class action litigation in federal and state courts across the United States. The firm has successfully prosecuted cases involving securities fraud, antitrust violations, consumer fraud, unlawful business practices and insurance company fraud. Under Much Shelist's leadership, class members have obtained judgments and settlements in excess of $4 billion.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.