NEW YORK, July 3, 2002 (PRIMEZONE) -- Please take notice that the law firm of Kirby McInerney & Squire, LLP has commenced a class action lawsuit on behalf of all purchasers of CMS Energy Corp. (NYSE:CMS) securities during the period from August 3, 2000 through May 10, 2002 (the "Class Period"). The action, pending in the United States District Court for the Eastern District of Michigan, seeks to recover losses suffered by such investors.
A copy of the complaint is available from the Court or from Kirby McInerney & Squire. Please visit our website, which offers summary and detailed information concerning the case at www.kmslaw.com/new_cases/cms_energy/cms.htm, or contact us by phone at (888) 529-4787 or by email at mkennedy@kmslaw.com.
The complaint charges CMS Energy, as well as its Chief Executive, Chief Financial and Chief Operating Officers, with violations of Sections 10(b) and 20(a) of the Securities and Exchange Act of 1934. The alleged violations, according to the complaint, stem from materially false and misleading financial statements issued by the defendants during the Class Period that, as detailed below: (i) misrepresented CMS Energy's business, operations and financial performance; and (ii) caused CMS Energy securities to trade at artificially-inflated prices.
The complaint alleges that, during the class period, CMS Energy inflated its publicly reported revenues through sham "round-trip" energy trading in which CMS Energy purchased and sold the exact same amount of energy at the exact same price. There is no reason for doing these transactions other than to inflate reported revenues, growth, and market share. As the complaint alleges, CMS Energy has admitted to reporting $4.4 billion in false revenues from such sham energy trading, thereby inflating its publicly-reported revenues by approximately 30% during 2001. The complaint alleges that the inflated and publicly reported revenue and trading figures misrepresented CMS Energy's real revenue, growth rate, and market share. As a result, the complaint alleges, CMS Energy securities traded at inflated prices based on such publicly reported, but misleading, figures; and investors who purchased CMS Energy securities at such inflated prices were damaged thereby. The SEC is now investigating CMS Energy, which is restating its financial statements for 2001 in order to remove previously reported and misleading revenues stemming from round-trip trading. When CMS Energy admitted the existence and extent of such round-trip trading, CMS Energy shares lost approximately 20% of the their value, falling from above $20.00 per share on May 10, 2002 to below $16.00 per share on May 13, 2002.
Plaintiffs are represented by Kirby McInerney & Squire, LLP, which specializes in complex litigation, including securities class actions. The firm has repeatedly demonstrated its expertise in this field, and has been recognized by various courts which have appointed the firm to major positions in consolidated and multi-district litigation. The firm's efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling hundreds of millions of dollars, and its achievements and quality of service have been chronicled in numerous published decisions. More information about the firm, class actions in general or about the role of the lead plaintiff in a securities class action can be obtained through Kirby McInerney & Squire's website at www.kmslaw.com.
If you are a member of the class described above, you may, no later than July 16, 2002, move the Court to serve as lead plaintiff of the class, if you so choose, pursuant to the Private Securities Litigation Reform Act of 1995 (the "PSLRA"), 15 U.S.C. section 78u-4(a). A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. 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 seek appointment as a lead plaintiff. For more information about the case, its claims, and your rights, please contact:
Ira M. Press, Esq. Michele Kennedy KIRBY McINERNEY & SQUIRE, LLP 830 Third Avenue, 10th Floor New York, New York 10022 Telephone: (212) 317-2300 or Toll Free (888) 529-4787 E-Mail: mkennedy@kmslaw.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca