NEW YORK, May 21, 2002 (PRIMEZONE) -- The law firm of Abbey Gardy, LLP has filed a class action against Reliant Energy Inc. ("Reliant Energy" or the "Company") (NYSE:REI) in the United States District Court for the Southern District of Texas, Houston Division, on behalf of all persons or entities who purchased Reliant Energy common stock during the period from August 2, 1999 through May 10, 2002, inclusive (the "Class Period").
The complaint charges Reliant Energy and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. The complaint alleges that, throughout the Class Period, defendants violated Section 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market, thereby inflating the price of Reliant Energy securities.
Specifically, the complaint alleges that, throughout the Class Period, defendants issued statements regarding Reliant Energy's quarterly and annual financial performance. The complaint alleges that these statements were false and misleading because, among other things, the company's revenue were materially overstated because (1) its subsidiary Reliant Resources, Inc. engaged in transactions with other power traders to buy and sell power to each other simultaneously and at the same price ("Roundtrip Transactions") and (2) the Company improperly recorded revenue from these transactions. On May 10, 2002, it was announced that Reliant Resources was canceling a $500 million private placement debt offering and disclosed that it had engaged in Roundtrip Transactions. The price of its parent company, Reliant Energy, dropped from $24.60 on May 9, 2002 to a low of $15.87 on May 14, 2002.
Plaintiff seeks to recover damages on behalf of all those who purchased or otherwise acquired Reliant Energy securities during the Class Period. If you purchased or otherwise acquired Reliant Energy securities during the Class Period, and either lost money on the transaction or still hold the securities, you may wish to join in the action to serve as lead plaintiff. If you purchased Reliant Energy securities during the Class Period, you may, no later than July 15, 2002, request that the Court appoint you as lead plaintiff.
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 plaintiffs." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff.
Abbey Gardy, LLP has been retained as one of the law firms to represent the Class. The attorneys at Abbey Gardy, LLP have extensive experience in securities class action cases, and have played lead roles in major cases resulting in the recovery of hundreds of millions of dollars to investors. If you would like to discuss this action or if you have any questions concerning this Notice or your rights as a potential class member or lead plaintiff, you may contact Nancy Kaboolian, Esq. or Jennifer Haas of Abbey Gardy, LLP at (800) 889-3701 or email jhaas@abbeygardy.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca