NEW YORK, March 8, 2004 (PRIMEZONE) -- Wolf Popper LLP has filed a securities fraud lawsuit against El Paso Corporation (NYSE:EP) and certain of its officers and directors on behalf of all persons who purchased El Paso securities on the open market from March 31, 2003 through February 17, 2004. The action was filed in the United States District Court for the Southern District of Texas (Cause No. H-04-0924). The complaint can be viewed on Wolf Popper's website or obtained from the Court.
The complaint alleges that during the Class Period, defendants materially misrepresented El Paso's financial condition and performance in SEC filings and public statements by improperly accounting for El Paso's oil and gas reserves, thereby misleading investors as to the productive capability of El Paso and as to the projected future cash flows from El Paso's natural gas and oil properties.
On December 15, 2003, El Paso revealed that it was in the process of reviewing its gas and oil reserve estimates and warned that there might be negative revisions to its previously-reported proved reserve estimates. El Paso made similar statements on December 23, 2003 and February 2, 2004, but did not disclose the anticipated magnitude of such revisions.
After the market closed on February 17, 2004, El Paso announced that although it had previously reported proved reserves of 5.2 trillion cubic feet at the end of fiscal year 2002, it in fact had proved reserves of only 2.6 trillion feet, a difference of 41%. As a result, El Paso would be forced to take a fourth quarter pre-tax charge of approximately $1 billion.
In reaction to El Paso's disclosure, on February 18, 2004, after trading at a volume of 57 million shares, El Paso stock closed at $7.26 per share, down $1.55, or 18%, from its closing price before the announcement on February 17, 2004.
Wolf Popper LLP has extensive experience representing shareholders in class actions and has successfully recovered billions of dollars for defrauded investors and shareholders.
Class members who desire to be appointed a lead plaintiff in this action must file a motion with the Court no later than April 19, 2004. Class members who are interested in serving as a lead plaintiff in this action, or other persons who have questions or information regarding the prosecution of this action, are urged to call or write:
Wolf Popper LLP Caroline S. Curtiss, Esq. 845 Third Avenue New York, NY 10022 Tel.: 212.451.9627 Toll Free: 877.370.7703 Fax: 212.486.2093 Toll Free Fax: 877.370.7704 Email: irrep@wolfpopper.com website: www.wolfpopper.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca