NEW YORK, Aug. 18, 2004 (PRIMEZONE) -- Murray, Frank & Sailer LLP announces that a class action complaint has been filed in the Southern District of Texas against Gexa Corp. ("Gexa" or the "Company") (Nasdaq:GEXA) for alleged acts in violation of U.S. securities fraud laws.
The complaint alleges that, from August 14, 2003 and March 30, 2004 (the "Class Period"), Gexa, a Texas retail electricity provider, Neil Liebman (CEO), Marcie Zlotnik (Director) and Sarah Veach (Chief Accounting Officer) violated sections 10(b) and 20(a) of the Exchange Act, and Rule 10b-5, by issuing a series of material misrepresentations to the market during the Class Period.
The complaint alleges that throughout the Class Period, defendants materially overstated Gexa's financial results in connection with its power delivery business. On March 30, 2004, after the market closed, the Company issued a press release which admitted that its previously reported revenues had been overstated estimates, not measurable earned revenues based upon power delivered to customers or proceeds from energy sales as previously reported. Defendants also revealed that in connection with the completion of the audit for fiscal year 2003, the Company's independent auditors identified certain material weaknesses in the Company's systems of internal controls.
Based upon this press release, the price of the Company's stock dropped more than 25% falling from a closing price of 6.64 per share on March 30, 2004 to a closing price of 4.90 per share on March 31, 2004.
Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.
If you purchased or acquired the common stock of Flight Safety between January 14, 2003, and July 16, 2004, inclusive, and sustained damages, you may, no later than September 27, 2004, move the Court to serve as lead plaintiff of the class. Shareholders outside the United States may also join the action, regardless of where they live or which exchange was used to purchase the securities. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this class action online at http://www.murrayfrank.com/CM/NewCases/NewCases.asp. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff's counsel Eric J. Belfi or Aaron D. Patton of Murray, Frank & Sailer LLP.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca