NEW YORK, Oct. 29, 2008 (GLOBE NEWSWIRE) -- On October 28, 2008, Scott+Scott LLP filed a class action lawsuit against Constellation Energy Group, Inc. ("Constellation Energy'' or the "Company'') (NYSE:CEG) and certain officers and directors of the Company in the U.S. District Court for the District of Maryland. The action is on behalf of those purchasing Constellation Energy common stock during the period beginning January 30, 2008 and through September 16, 2008, inclusive (the "Class Period''), for violations of the Securities Exchange Act of 1934.
If you purchased Constellation Energy common stock during the Class Period and wish to serve as a lead plaintiff in the action, you must move the Court no later than November 21, 2008. Any member of the investor class may move the Court to serve as lead plaintiff through counsel of its choice, or may choose to do nothing and remain an absent class member. If you wish to discuss this action or have questions concerning this notice or your rights, please contact Scott+Scott (scottlaw@scott-scott.com, (800) 404-7770, (860) 537-5537 or visit the Scott+Scott website, http://www.scott-scott.com) for more information. There is no cost or fee to you.
According to the complaint, during the Class Period, Constellation Energy issued materially false and misleading statements regarding the Company's operations and financial performance. Among other things, Defendants failed to disclose that the Company's financial results were inflated by questionable accounting practices. In addition, the Company concealed the extent of its credit exposure to failing trading partners, particularly Lehman Brothers Holding Inc., which would affect the Company's ability to engage in energy-related trades. As a result of defendants' false statements and omissions during the Class Period, Constellation Energy common shares traded at artificially inflated prices.
In August 2008, share prices of Constellation Energy softened as analysts began to question certain aspects of the Company's accounting, particularly the Company's questionable characterizations of depreciation, cash flow and mark-to-market adjustments. Shortly thereafter, on September 15, 2008, Lehman Brothers, a key trading partner of Constellation Energy, filed for Chapter 11 bankruptcy protection. On that day, investors were stunned as Constellation's business exposure to the Lehman bankruptcy was revealed. By the close of the Class Period, the Company's shares traded at $24.77 per share, a 75% loss from the Class Period high.
Scott+Scott has significant experience in prosecuting major securities, antitrust and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals and other entities worldwide.