NEW YORK, Feb. 10, 2003 (PRIMEZONE) -- Notice is hereby given that a class action lawsuit was commenced in the United States District Court for the District of Kansas on behalf of all purchasers of Westar Energy, Inc. ("Westar" or the "Company") (NYSE:WR) securities between May 15, 2001 through December 26, 2002, inclusive (the "Class Period"). A copy of the complaint filed in this action can be viewed on the firm's website at www.faruqilaw.com
The complaint charges defendants with violations of federal securities laws by, among other things, issuing a series of materially false and misleading press releases concerning Westar's financial results and business prospects. Specifically, the complaint alleges that Westar failed to disclose that the Company was engaging in bogus, round trip energy transactions, whereby the Company sold energy and simultaneously bought it back for the same consideration, recognizing the trades as revenue. Moreover, the Company failed to disclose that it had under-reported, by tens of millions of dollars, a goodwill impairment charge relating to Westar's acquisition of Protection One.
However, on November 1, 2002, Westar shocked the market when it announced that it was restating its financial results for the first and second quarter of 2002 as a result of the under-reporting of these impairment charges. In addition, on December 26, 2002, the Company announced that the Federal Energy Regulatory Commission issued a subpoena relating to round trip trades between Westar and trading partner Cleco Corp. In reaction to this announcement, the price of Westar common stock dropped, falling from a December 25, 2002 close of $11.20 per share, to close at $9.98 per share on December 30, 2002, a decline of 10.8% over three trading days on unusually heavy trading volume.
Plaintiff seeks to recover damages on behalf of himself and all other individual and institutional investors who purchased or otherwise acquired Westar securities between May 15, 2001 through December 26, 2002, excluding defendants and their affiliates. Plaintiff is represented by Faruqi & Faruqi, LLP, a law firm with extensive experience in prosecuting class actions, and significant expertise in actions involving corporate fraud.
If you wish to obtain information concerning joining this action you can do so under the "Join Lawsuit" section of our website at www.faruqilaw.com
If you purchased Westar securities during the Class Period, you may, not later than March 17, 2003, 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 your rights or interests, please contact:
ERIC CRUSIUS, ESQ. ANTHONY VOZZOLO, ESQ. FARUQI & FARUQI, LLP 320 East 39th Street New York, NY 10016 Telephone: (877) 247-4292 or (212) 983-9330 e-mail Ecrusius@faruqilaw.com Avozzolo@faruqilaw.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.