PHILADELPHIA, March 3, 2004 (PRIMEZONE) -- Law Offices Bernard M. Gross, P.C. (http://www.bernardmgross.com) announces that a class action lawsuit, numbered 04cv 0853, was commenced in the United States District Court for the Southern District of Texas, against defendants El Paso Corporation ("El Paso" or the "Company") and William A. Wise on behalf of all persons who purchased/acquired El Paso common stock (NYSE:EP) pursuant to the $24 billion merger with Coastal Corp. ("Coastal") in a stock for stock transaction completed on January 29, 2001 ("Merger") (the "Class Period"), seeking remedies under the Securities Exchange Act of 1934 (the "Exchange Act"). The case is presiding before the Honorable John Rainey.
The Complaint alleges that defendants violated the federal securities laws by issuing materially false and misleading statements regarding El Paso's financial results and reported reserves. As a result of Defendants' conduct, the complaint alleges, El Paso was able to inflate its stock price, maintain its credit rating, and maintain its status in the energy industry as a leader.
On February 17, 2004, El Paso announced that the Company had cut its proven natural gas reserves estimate by approximately 41% and would take a $1 billion pretax charge in the fourth quarter of 2003. In response to the Company's devastating news, El Paso's stock price plummeted by approximately 18% to close at $7.26 on unusually heavy trading volume of 57 million shares on February 18, 2004. The magnitude of the writedown of the reserves shocked the market and, quoting one analyst, "suggests to us that prior management had significantly overstated the productive capacity of the company's gas reserves." Another analyst is quoted as alleging that El Paso had "prematurely booked" certain reserves before securing necessary permission to develop the assets.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Deborah R. Gross or Susan R. Gross of Law Offices Bernard M. Gross at 866-561-3600(toll-free) or via e-mail at susang@bernardmgross.com. If you are a member of this class, you can view a copy of the complaint as filed at http://www.bernardmgross.com. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
If you purchased or otherwise acquired the securities of El Paso between February 22, 2000 and February 17, 2004, and sustained damages, you may, no later than April 19, 2004, file a motion to be appointed lead plaintiff, if you so choose. Law Offices Bernard M. Gross, P.C. which has significant experience and expertise in prosecuting class actions and has recently filed cases in the following:
Lead Plaintiff
Filing Deadline
Company Symbol Class Period
Interpool, Inc. Pink Sheets:IPLI 3/27/01 - 12/29/03 04/05/2004
Wave Systems Nasdaq:WAVX 7/31/03 - 12/18/03 04/05/2004
Corporation
Walt Disney NYSE:DIS sold
Company 2/9/04 - 2/10/04 04/20/04