NEW YORK, Dec. 2, 2002 (PRIMEZONE) -- A shareholder sued Allegheny Energy, Inc. (NYSE:AYE) and four of its top officers today, accusing them of issuing misleading financial statements about the company, Berman DeValerio Pease Tabacco Burt & Pucillo said.
The complaint was filed in the U.S. District Court for the Southern District of New York. It seeks damages for violations of federal securities laws on behalf of all investors who bought Allegheny Energy stock from April 23, 2001 through November 4, 2002 (the Class Period).
Berman DeValerio has represented investors in class actions for 20 years. To review the complaint and learn more about becoming a lead plaintiff, please visit the firm's website at www.bermanesq.com.
The lawsuit claims that throughout the Class Period Allegheny Energy artificially inflated its revenue, trading volumes, and growth rates by relying on "wash" or "round-trip" energy trades performed by its subsidiary, Global Energy Markets (G.E.M.), which it had purchased from Merrill Lynch in 2001. These sham transactions are based on the simultaneous purchase and sale of energy at the same quantity and price between the same parties.
The complaint says Allegheny Energy's problems first drew public attention on September 25, 2002 when the company filed a lawsuit against Merrill Lynch admitting G.E.M's business depended heavily on "wash" transactions, including trades with Enron. When allegations surface about wrongdoing at Enron, Allegheny Energy could not sustain its revenues, the lawsuit asserts.
Allegheny Energy's admissions about G.E.M. led to the company's debt being downgraded to "junk bond" status and the eventual decline in its stock price.
If you purchased Allegheny Energy, Inc. stock during the period April 23, 2001 through November 4, 2002 you may wish to contact the following attorney at Berman DeValerio Pease Tabacco Burt & Pucillo to discuss your rights and interests.
C. Oliver Burt, III, Esq. 515 North Flagler Drive Suite 1701 West Palm Beach, FL 33401 (561) 835-9400 lawfla@bermanesq.com
If you wish to apply to be lead plaintiff in this action, a motion must be filed on your behalf with the court no later than December 20, 2002. You may contact the attorneys at Berman DeValerio to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action. You may also retain counsel of your choice. To be a member of the class, however, you need not take any action at this time.
Berman DeValerio Pease Tabacco Burt & Pucillo prosecutes class actions nationwide on behalf of institutions and individuals, chiefly victims of securities fraud, antitrust law violations and consumer fraud. The firm consists of 36 attorneys in Boston, San Francisco and West Palm Beach, Florida.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.