NEW YORK, Nov. 4, 2002 (PRIMEZONE) -- Wolf Popper LLP has filed a securities fraud class action complaint against NUI Corporation (NYSE:NUI) and its President and Chief Executive Officer John Kean, Jr., on behalf of purchasers of NUI common stock between July 26, 2001 and October 17, 2002 (the "Class Period"). A copy of the complaint is available from the U.S. District Court for the District of New Jersey and on Wolf Popper's website (www.wolfpopper.com).
The plaintiff alleges that during the Class Period, defendants made materially false and misleading statements and failed to disclose that NUI was incurring significantly greater costs and generating reduced revenues. These costs included: (i) increases in fixed costs for NUI's telecommunications business; (ii) increased costs of self-insuring for employee medical benefits; (iii) a material decline in the value of its pension plan assets which would cause NUI to accrue substantial pension expense; and (iv) a sharp rise in bad debts. As a result of the adverse economic conditions facing the Company, NUI was unable to generate the necessary cash flow from operations to reduce its very high debt levels. Moreover, defendants knew that as a result of these adverse conditions, the Company's ability to conduct a secondary offering of common stock would be impaired.
On October 18, 2002, defendants finally disclosed to investors that NUI's earnings for FY 2002 would be far below their prior guidance. Following this announcement, NUI's shares fell $9.27 per share, or approximately 49%, to close at $10.90 per share.
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 December 30, 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, Michael A. Schwartz, Esq. 845 Third Avenue, New York, NY 10022-6689; Tel.: 212.451.9668, Toll Free: 877.370.7703; Fax: 212.486.2093, Toll Free: 877.370.7704; Email: irrep@wolfpopper.com; mschwartz@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