PHILADELPHIA, Nov. 12, 2002 (PRIMEZONE) -- Spector, Roseman & Kodroff, P.C. has filed a class action suit on behalf of purchasers of the securities of American Electric Power Company, Inc. ("AEP" or the "Company") (NYSE:AEP) between April 24, 2002 and October 9, 2002, inclusive.
The action is pending in the United States District Court, Southern District of Ohio, Eastern Division, located at Joseph P. Kinneary U.S. Courthouse, 85 Marconi Boulevard, Columbus, Ohio 43215, against defendants AEP, E. Linn Draper, Jr. and Susan Tomasky.
The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between April 24, 2001 and October 9, 2002, thereby artificially inflating the price of AEP securities. Throughout the Class Period, as alleged in the complaint, AEP issued materially false and misleading statements regarding its increasing energy trading revenues and earnings. As alleged in the complaint, these statements were materially false and misleading because they failed to disclose, among other things, that: (i) the Company failed to implement appropriate risk management procedures regarding information provided to trade publications; (ii) as a result of this failure to implement appropriate risk management procedures, the Company was manipulating price indices used throughout the industry; (iii) as a result of this manipulation, the Company gained revenue and profits that it could not maintain absent manipulation; (iv) without improper manipulation, the Company could not successfully maintain its energy trading business; and (v) as a result, the energy trading business was not the business opportunity that the Company presented throughout the Class Period.
On October 9, 2002, the last day of the Class Period, AEP announced that it had fired five of its thirty natural-gas traders, who AEP stated had given false gas pricing data to index publishers. While AEP acknowledged that its traders had not been engaged in "ethical business practices," it claimed that it did not know whether the false data affected the published indices. In fact, no one at AEP asked any of the fired traders why they engaged in the fraudulent activities. As alleged in the complaint, by making this announcement, AEP was essentially admitting that it had failed to institute appropriate oversight measures to prevent the wrongful activity, and by doing so, was able to make substantial profits from its energy selling activities.
If you bought the securities of American Electric Power Company, Inc. between April 24, 2001 and October 9, 2002 you may, no later than December 23, 2002, request that the Court appoint you as lead plaintiff. A Lead Plaintiff is a representative, chosen by the Court, that acts on behalf of other class members in directing the litigation. The Private Securities Litigation Reform Act of 1995 directs Courts to assume that the class member(s) with the "largest financial interest" in the outcome of the case will best serve the class in this capacity. Courts have discretion in determining which class member(s) have the "largest financial interest," and have appointed Lead Plaintiffs with substantial losses in both absolute terms and as a percentage of their net worth.
If you have sustained substantial losses in American Electric Power Company securities during the Class Period, please contact Spector, Roseman & Kodroff, P.C. at classaction@srk-law.com for a more thorough explanation of the Lead Plaintiff selection process. If you have relatively small losses, your ability to participate in any recovery will be protected by the Lead Plaintiff(s), and you need take no affirmative steps at this time.
To join this action online, please visit http://www.srk-law.com/dbjoinaclassaction.asp. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel Robert M. Roseman toll-free at 888-844-5862 or via E-mail at classaction@srk-law.com. For more detailed information about the firm please visit its website at http://www.srk-law.com.
Spector, Roseman & Kodroff, P.C., located in Philadelphia, Pennsylvania and San Diego, California, concentrates its practice in complex litigation including actions dealing with securities laws, antitrust, contract and commercial claims. The firm is active in major litigation pending in federal and state courts throughout the United States. The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm as lead counsel in numerous major class actions involving violations of the federal securities laws and the federal antitrust laws, and consumer fraud. As a result of the efforts of the firm, and its members, hundreds of millions of dollars have been recovered on behalf of thousands of defrauded shareholders and companies.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca