BALA CYNWYD, Pa., May 15, 2002 (PRIMEZONE) -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Southern District of Texas, Houston Division on behalf of all purchasers of the common stock of Reliant Resources, Inc. ("Reliant Resources" or the "Company") (NYSE:RRI) between May 1, 2001 and May 10, 2002, inclusive (the "Class Period").
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@sbclasslaw.com.
The complaint charges Reliant Resources, Inc. and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. Specifically, the complaint alleges that the defendants issued statements regarding Reliant Resources' quarterly and annual financial performance and filed reports confirming such performance with the United States Securities and Exchange Commission ("SEC"). The complaint alleges that these statements were materially false and misleading because, among other things, (i) the Company's stated and represented revenues in 1999 and 2000 were materially overstated because 10% of such revenues represented purchases and sales with the same counter-party at the same price, or so-called "round trip trades"; and (ii) the Company improperly accounted for certain transactions in its conventional accrual accounts as cash flow hedges.
On May 10, 2002, the last day of the Class Period, Reliant Resources announced that it was canceling a $500 million private placement debt offering that had been priced on May 9, 2002, due in part, to having engaged in "round trip" trades. Following this announcement, Reliant Resources common stock fell from a high of $15.10 on May 9, 2002 to a low of $11.10 on May 10, 2002, or a single-day decline of more than 25% on high trading volume and a decline of more than 55% from the Class Period high.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, LLP, which has significant experience and expertise prosecuting class actions on behalf of investors and shareholders. For more information on Schiffrin & Barroway, or to sign-up to participate in this action online, please visit http://www.sbclasslaw.com/cgi/signup.cgi.
If you are a member of the class described above, you may, not later than July 15, 2002, move the Court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.