NUI Corporation Sued in Securities Fraud Class Action by Law Offices Bernard M. Gross, P.C. -- NUI


PHILADELPHIA, Nov. 5, 2002 (PRIMEZONE) -- Previously, notice was given that a class action lawsuit was filed on October 28, 2002, in the United States District Court for the District of New Jersey, on behalf of all persons and entities who purchased or otherwise acquired the common stock of NUI Corporation (NYSE:NUI) ("NUI" or the "Company"), between November 8, 2001 and October 17, 2002, inclusive (the "Class Period"). The action is pending in the United States District Court, District of New Jersey, located at United States Courthouse, 50 Walnut St., Newark, NJ 07101, against defendants NUI Corporation and John Kean, Jr.

Plaintiff's counsel has now received from the court the assignment of a judge and civil action number. The Honorable Mary L. Cooper is the presiding Judge. The Civil action number is 02cv5220. A copy of the Complaint is available from the Court or the Law Offices Bernard M. Gross, P.C. Please contact us by phone at 866-561-3600 (toll free) or by E-mail at susang@bernardmgross.com.

The complaint charges NUI Corporation and John Kean, Jr. President, Chief Executive Director and a Director and member of the Executive Committee with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5, by issuing a series of materially false and misleading statements to the market during the Class Period concerning the failure to properly record its fixed cost expenses, accrue necessary pension expenses, and reserve adequate amounts for its self-insured medical benefits in its quarterly unaudited financial statements. As alleged in the Complaint, throughout the Class Period, defendants knew that NUI was confronting material problems in its businesses which were causing NUI to incur greatly increased costs throughout the Class Period. These costs included significant increases in fixed costs for its telecommunications business, greatly increasing costs of self-insuring for medical benefits, and the tremendous decline in the value of its pension plan assets which would cause NUI to accrue substantial pension expense. These increased material costs were putting a tremendous strain on NUI's operating margins and, if properly and fully accounted for in NUI's financial statements, would cause NUI to suffer greatly reduced earnings per share. The problem presented to defendants by these materially increasing costs and their negative impact on NUI's earnings if properly and fully accounted for and disclosed was exacerbated by the high level of long-term and short-term debt on NUI's balance sheet and the declining earnings NUI began to experience at the outset of the Class Period. Thus, in order to mislead the market with respect to NUI's spiraling costs and negative impact on NUI's margins and earnings, defendants embarked on the scheme and continuing course of conduct during the Class Period to enable NUI to complete necessary corporate acquisitions using its stock as currency and to complete a public offering of common stock to generate desperately-needed cash to pay down its short-term debt.

Finally, when NUI's newly appointed outside auditors were conducting their audit of NUI's financial statements for Fiscal Year 2002, the twelve months ended September 30, 2002 ("FY 2002"), defendants, on October 18, 2002, disclosed the long-withheld truth--NUI would sustain greatly reduced earnings for FY 2002 and FY 2003 because of its spiraling costs, including significantly increased fixed costs to build its back office infrastructure to support its telecommunications business and significant increases in medical and pension benefit expenses due to the increase in the volume of claims and the decline in the equity market. As a result of this disclosure, NUI's share price fell more than 50%, falling $10.17 per share, to close at $10.00 per share on October 18, 2002, on extraordinary volume of 3.2 million shares.

Law Offices Bernard M. Gross, P.C. has significant experience and expertise in prosecuting class actions. Law Offices Bernard M. Gross P.C. has recently filed the following cases:


                                                      LEAD PLAINTIFF
                                     PURCHASED          CLASS PERIOD
 COMPANY           SYMBOL             DURING          FILING DEADLINE 

 Cigna Corp       CI-NYSE       05/02/01 - 10/24/02       12/24/02

 Cutter & Buck    CBUKE-NASDAQ  06/23/00 - 08/12/02       11/12/02

 Electronic Data  EDS-NYSE      09/07/99 - 09/24/02       11/25/02
  Systems Corp.

 Sears            S-NYSE        01/07/02 - 10/17/02       12/17/02

Plaintiff seeks to recover damages on behalf of Class members and is represented by the law firm of Law Offices Bernard M. Gross, P.C. which has significant experience and expertise in prosecuting class actions.

If you bought the common stock of NUI between November 8, 2001 and October 17, 2002, you may, no later than December 30, 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. If you wish to discuss this action or have any questions concerning this Notice or rights or interests with respect to these matters,


 PLEASE CONTACT:  Law Offices Bernard M. Gross, P.C.
                  Deborah R. Gross, Esquire
                  Susan R. Gross, Esquire
                  1515 Locust Street, Second Floor
                  Philadelphia, PA 19102
                  Telephone:  866-561-3600 (toll-free)
                              or 215-561-3600
                  E-mail: susang@bernardmgross.com or 
                          debbie@bernardmgross.com
                  Website: http://www.bernardmgross.com

More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca



            

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