BALA CYNWYD, Pa., June 7, 2002 (PRIMEZONE) -- A shareholder sued Exelon Corporation, ("Exelon" or the "Company") (NYSE:EXC) claiming that the company misled investors about its business and financial condition, as alleged in a complaint filed by the law firm of Schiffrin & Barroway, LLP.
The complaint was filed in the U.S. District Court for the Northern District of Illinois, Eastern Division and seeks damages for violations of federal securities laws on behalf of all investors who bought Exelon Corporation securities between April 24, 2001 and September 27, 2001 (the "Class Period").
Schiffrin & Barroway, LLP has prosecuted shareholder class actions for over fourteen years and has recovered more than $1 billion for investors. If you are a shareholder of Exelon Corporation and want to learn more about this lawsuit and about becoming a lead plaintiff, you may visit our website at http://www.sbclasslaw.com/cgi/signup.cgi.
The complaint alleges that the Illinois-based Exelon Corporation 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 projected earnings figure for 2001. The complaint alleges that these 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 dropping in value at a rapid pace and, therefore, the Enterprises segment could not and would not meaningfully contribute to the Company's financial results, and that 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 announcing that it would not meet its earnings commitment of $4.50 for 2001, blaming 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.
If you purchased Exelon Corporation securities between April 24, 2001 and September 27, 2001, you may be a member of the class and have until July 8, 2002 to move the court to become a lead plaintiff. To learn more about your rights and interests in this case and your ability to potentially recoup your losses, please contact Schiffrin & Barroway directly at 888-299-7706 (toll free) or 610-822-2221, fax number 610-822-0002, e-mail at info@sbclasslaw.com or visit our website at www.sbclasslaw.com.
More information on this and other class actions can be found on the Class Action Newsline at http://www.primezone.com/ca