NEW YORK, Aug. 19, 2002 (PRIMEZONE) -- On August 14, 2002, Nicor, Inc. (NYSE:GAS) issued a press release admitting that it was unable to meet Securities and Exchange Commission regulations requiring its top executives to certify Nicor's 2002 financial statements, citing uncertainties involving results of its gas distribution unit. That same day, the company announced it would restate its first and second-quarter financial results amid ongoing investigations, including an informal inquiry by the SEC. This information relates specifically to the securities fraud class action complaint filed by Wolf Popper LLP on July 24, 2002. The complaint was filed in the U.S. District Court for the Northern District of Illinois, on behalf of purchasers of Nicor common stock from April 18, 2000 through July 18, 2002, inclusive. A copy of the complaint is available from the U.S. District Court for the Northern District of Illinois and on Wolf Popper's website (www.wolfpopper.com).
The Plaintiff alleges in the complaint that during the class period (April 18, 2000 through July 18, 2002) defendants overstated Nicor's results of operations. The true facts began to be disclosed on June 13, 2002 when it was reported that the Illinois Commerce Commission and state law enforcement officials were investigating allegations that Nicor boosted profits and overcharged its customers by manipulating its performance-based rate ("PBR") plan. The PBR plan is designed to provide Nicor with competitive incentives to purchase natural gas on behalf of ratepayers at lower prices. The regulatory agency began looking into the matter after the Citizen's Utility Board provided it with an in-depth memorandum believed to be written by a Nicor whistle-blower. The memo alleges that the utility shortchanged ratepayers by $133 million over the last two years. Additional facts were revealed on July 18, 2002, when Nicor issued a press release in which it admitted "accounting irregularities" at Nicor Energy L.L.C., a joint venture with Dynegy, Inc.
Disclosure of allegations that Nicor manipulated the PBR plan and additional allegations of accounting improprieties at its Nicor Energy joint venture caused Nicor common stock to plummet to a closing price of $22.75 per share on July 19, 2002, down $26.25 per share or 54% from its Class Period high price of $49.00 on April 22, 2002.
Any member of the class who desires to be appointed lead plaintiff in the class action must file a motion with the Court no later than September 20, 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 in this action, you may call or write:
Wolf Popper LLP, Robert C. Finkel, Esq. 845 Third Avenue, New York, NY 10022-6689
Tel.: 212.451.9620, Toll Free: 877.370.7703; Fax: 212.486.2093, Toll Free: 877.370.7704
Email: irrep@wolfpopper.com; website: www.wolfpopper.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca