NEW YORK, June 25, 2002 (PRIMEZONE) -- Mirant Corporation ("Mirant" or the "Company") (NYSE:MIR) and certain of its senior officers and directors have been charged with violations of the federal securities laws in a class action complaint filed by Wolf Popper LLP (the "Complaint"). The lawsuit was brought on behalf of all persons who purchased or otherwise acquired Mirant common stock from January 19, 2001 through May 6, 2002, inclusive (the "Class Period"). The Complaint, filed in the United States District Court for the Northern District of Georgia (Atlanta Division) under Index Number 1:02 CV 1751, charges Mirant and four of the Company's officers and directors with violation of Sections 10(b) of the Securities Exchange Act of 1934.
The Complaint alleges that a material portion of the revenue and earnings defendants' caused Mirant to report during the Class Period were derived from the improper transactions and tactics Mirant employed in the California energy market; as a result, the revenue and earnings associated with these transactions were allegedly reported in violation of generally accepted accounting principles ("GAAP"). The Complaint alleges that during the Class Period, defendants manipulated the supply and price of electrical power, especially in California's deregulated market. Mirant's alleged participation in a scheme to inflate the price of wholesale power in California resulted in the Company overcharging California energy providers on contracts which produced over $2 billion in revenue. The Federal Energy Regulatory Commission and the Attorney General of California are both investigating the propriety of Mirant's sale of electrical power in California.
Beginning in March of 2002 Mirant announced a string of investigations into its energy trading and energy sales practices. This string of bad news was culminated on May 7, 2002, when an article in The New York Times reported that documents uncovered in the investigation of Enron Corp. revealed that Mirant might have engaged in fraudulent practices similar to those employed by Enron. The financial market's reaction to this news caused the price of Mirant's stock to lose over 80% of its value, falling from its Class Period high of $50.00 per share to close at $9.75 per share on May 7, 2002.
Wolf Popper LLP has extensive experience representing shareholders in class actions and has successfully recovered billions of dollars for defrauded investors and shareholders. The reputation and expertise of the firm in shareholder and other class action litigation has been repeatedly recognized by the courts, which have appointed the firm to major positions in complex multi-district and consolidated litigations. For more information about Wolf Popper please visit the firm's website at: www.wolfpopper.com.
Any member of the proposed class who desires to be appointed lead plaintiff in this action must file a motion with the Court no later than July 29, 2002. Class members must meet certain legal requirements to serve as a lead plaintiff. If you have questions or information regarding this action, or if you are interested in serving as a lead plaintiff, you may call or write:
James A. Harrod, Esq. - Telephone: 212.451.9642 Abigail Kowaloff, Investor Relations - Toll Free: 877.370.7703 WOLF POPPER LLP 845 Third Avenue New York, NY 10022-6689 212.759.4600 Facsimile: 212.486.2093 or 877.370.7704 E-Mail: IRRep@wolfpopper.com Website: http://www.wolfpopper.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca