PHILADELPHIA, Nov. 15, 2002 (PRIMEZONE) -- Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Eastern District of Virginia, on behalf of all purchasers of the securities of THE AES CORPORATION (NYSE:AES)("AES or the "Company"), between April 26, 2001 and February 14, 2002, inclusive (the "Class Period").
The action, numbered 02-CV- 1679, is pending in the United States District Court, Eastern District of Virginia, located at 401 Courthouse Square, Alexandria, Virginia 22314, against defendants AES, DENNIS W. BAKKE, ROGER W. SANT and BARRY J. SHARP. 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 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 26, 2001 and February 14, 2002, thereby artificially inflating the price of AES securities. The complaint alleges that, throughout the Class Period, defendants issued numerous statements which highlighted the Company's strong financial performance, specifically its business operations in the United Kingdom. As alleged in the complaint, these statements were materially false and misleading because they failed to disclose and/or misrepresented the following adverse facts, among others: (i) that the United Kingdom adopted a new framework for the pricing of energy that undermined the Company's ability to achieve profitability in its United Kingdom activities, and as a result, the Company would experience a rapid decline in its U.K. financial operations; (ii) the adoption of NETA (New Energy Arrangements) in the United Kingdom caused the Company's Fifoot utility operations to operate at a loss, as expected; (iii) that in the first quarter of 2001, Fifoots had an after-tax loss of $11 million; and (iv) that the Company's United Kingdom operations were severely impaired as a result of new pricing arrangements adopted there and that the Company lacked adequate long-term contracts to avoid a rapid decline in its United Kingdom operations as a result of the new pricing arrangements.
On February 14, 2002, AES shocked the market by announcing that it had ceased operations of its Fifoots Point power station in the United Kingdom because of "sliding wholesale electricity prices." In reaction to the announcement, AES securities plummeted over 25% on February 15, 2002 after the truth concerning AES' Fifoots Point plant and future prospects were finally revealed, dropping from $9.50 per share on February 14, 2002, to $7.00 per share on February 15, 2002.
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. Law Offices Bernard M. Gross P.C. has recently filed the following cases:
COMPANY SYMBOL PURCHASED DURING LEAD PLAINTIFF
CLASS PERIOD FILING DEADLINE
CIGNA CORP CI - NYSE 05/02/01 - 10/24/02 12/24/02
Electronic
Data Systems
Corp. EDS - NYSE 09/07/99 - 09/24/02 11/25/02
NUI CORP NUI - NYSE 11/8/01 - 10/17/02 12/30/02
Sears Roebuck S - NYSE 01/07/02 - 10/17/02 12/17/02
Company
TXU CORP. TXU - NYSE 4/25/02 - 10/11/02 12/16/02
If you bought the securities of AES between April 26, 2001 and February 14, 2002, you may, no later than December 23, 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.