BALA CYNWYD, Pa., July 9, 2002 (PRIMEZONE) -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
A securities class action lawsuit pending in the U.S. District Court for the Northern District of Georgia claims that Mirant Corporation (NYSE:MIR) ("Mirant" or the "Company") between January 19, 2001 and May 6, 2002 misled shareholders about its business and financial condition.
Plaintiff seeks damages for violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (and/or the Securities Act of 1933) on behalf of all investors who bought Mirant Corporation securities between January 19, 2001 and May 6, 2002 (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 Mirant 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 Georgia-based Mirant Corporation reaped illegal profits in California by artificially manipulating energy prices through a variety of improper tactics. The complaint alleges that Mirant's fraudulent practices have resulted in investigations by both the Attorney General of the State of California, and the Federal Energy Regulatory Commission, as well as a number of lawsuits filed by California, and consumers. The complaint further alleges that during the Class Period, while Mirant announced quarter-after-quarter of outstanding growth, and assured investors that problems in the California market had been properly accounted for, Mirant, in fact, failed to: (a) provide for the return of illegally obtained revenue, through a charge to earnings; (b) provide for professional fees associated with the investigations arising from the fraud through a charge to earnings; and (c) disclose the fact that the illegally obtained revenue was subject to forfeiture and that investigations surrounding the illegally obtained revenue would result in the expenditure of material amounts for legal and professional fees. As a result, according to the complaint, defendants' Class Period financial statements were materially overstated, and failed to comply with Generally Accepted Accounting Principles ("GAAP").
If you purchased January 19, 2001 and May 6, 2002 securities between January 19, 2001 and May 6, 2002, you may be a member of the class and have until July 29, 2002 to move the court to become a lead plaintiff. In order to serve as lead plaintiff, however, you must meet certain legal requirements. To be a member of the class, however, you do not need to take any action at this time. Should you decide to seek appointment as a lead plaintiff, you may retain Schiffrin & Barroway, or retain counsel of your choice.
To learn more about your rights and interests in this case and your ability to potentially recoup your losses, please contact Schiffrin & Barroway (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) 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 www.primezone.com/ca.