BALA CYNWYD, Pa., Oct. 17, 2002 (PRIMEZONE) -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Southern District of Ohio -- Western Division on behalf of all purchasers of the common stock of DPL Inc. (NYSE:DPL) from March 30, 1999 through August 14, 2002, inclusive (the "Class Period").
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@sbclasslaw.com.
The complaint charges DPL Inc. and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. Specifically, the complaint alleges that, during the Class Period, defendants falsely represented that the Company's portfolio of financial assets, comprising approximately 25% of DPL's total assets, were "highly diversified both in terms of geography and industry" and were a hedge against the Company's energy business. Defendants failed to disclose that DPL's investment portfolio was highly concentrated in Argentinian debt securities and other securities that were highly risky.
The facts began to be revealed after the close of regular trading on July 1, 2002, when DPL issued a press release announcing that it was revising downward its estimate of earnings for the full year 2002, largely as a result of a $110 million, or $0.92 per share, write-down of its financial assets. The write-down related primarily to investments in Latin America.
DPL's results for the second quarter of 2002 were subsequently reported on July 29, 2002 precipitating a review of DPL's debt for possible downgrading. On August 14, 2002, DPL revealed further information concerning DPL's investment portfolio and a contingent obligation to fund up to another $430 million of investments.
The plaintiff alleges that defendants engaged in this scheme to enrich themselves. For example, in 2000 defendant Forster received $1.2 million for managing the company's financial assets and $2.1 million when the price of DPL common stock reached $26 per share.
During the Class Period, shares of DPL common stock closed at as high as $33.68 per share. When the truth about the losses in DPL's portfolio of financial assets was revealed after the close of regular trading on July 1, 2002, the price of DPL common stock fell to $21.57 per share. DPL common stock continued to decline as additional information was revealed. DPL common stock closed on October 2, 2002 at $16.60 per share.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, LLP, which prosecutes class actions on behalf of investors and shareholders. For more information on Schiffrin & Barroway, or to sign-up to participate in this action online, please visit http://www.sbclasslaw.com/cgi/signup.cgi.
If you are a member of the class described above, you may, not later than December 9, 2002, move the Court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements.
More information on this and other class actions can be found on the Class Action Newsline at http://www.primezone.com/ca.