BALTIMORE, Oct. 30, 2008 (GLOBE NEWSWIRE) -- Brower Piven, A Professional Corporation announces that a class action lawsuit has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of Constellation Energy Group, Inc. ("Constellation" or the "Company") (NYSE:CEG) publicly traded securities during the period between January 30, 2008 and September 16, 2008, inclusive (the "Class Period"), including the Series A Junior Subordinated Debentures (the "Preferred Securities") (NYSE:CEG-PA), pursuant and/or traceable to the Company's Registration Statement and Prospectus (collectively, the "Registration Statement") issued in connection with the Company's June 27, 2008 Preferred Securities offering.
The complaint charges Constellation and certain of its officers and directors and its underwriters with violations under the Securities Exchange Act of 1934 and the Securities Act of 1933. No class has yet been certified in the above action. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff no later than November 21, 2008 and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement and how much of a settlement to accept for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in Constellation during the Class Period. You may contact Brower Piven (through hoffman@browerpiven.com or 410/332-0030) to answer any questions you may have in that regard.
The complaint alleges that due to defendants' positive, but false, statements, Constellation's stock closed at about $88.25 per share on June 9, 2008. The complaint further alleges that on June 27, 2008, defendants consummated the sale of Constellation's Preferred Securities pursuant to the false and misleading Registration Statement, selling 18 million shares at $25.00 per share for proceeds of approximately $435.8 million. The pleading states that in July 2008, the Company reported favorable financial results and reaffirmed EPS guidance of $5.25-$5.75 per share for 2008, but that in August 2008, analysts questioned Constellation's accounting and the implications of a credit downgrade. The complaint goes on to state that, on September 15, 2008, investors and the market became aware of Constellation's exposure to Lehman Brothers Holdings Inc.'s ("Lehman") bankruptcy, which affected the Company's ability to engage in energy-related trades, which news caused the value of Constellation's shares to decline approximately 50% from the Company's Class Period high of $97.34 per share. According to the complaint, defendants failed to disclose, including in the Registration Statement/Prospectus, that Constellation's characterization of depreciation expense inflated the Company's reported cash flows; that the Company's exposure to credit problems of trading partners was much greater than represented; and that the Company was not on track to report 2008 EPS of $5.25+ per share.
If you have suffered a net loss for all transactions in Constellation Energy Group, Inc. securities during the Class Period, including the Series A Junior Subordinated Debentures pursuant and/or traceable to the Company's Registration Statement and Prospectus issued in connection with the Company's June 27, 2008 Preferred Securities offering, you may obtain additional information about this lawsuit and your ability to become a lead plaintiff by contacting Brower Piven at www.browerpiven.com, by email at hoffman@browerpiven.com, by calling 410-332-0030, or at Brower Piven, A Professional Corporation, The World Trade Center-Baltimore, 401 East Pratt Street, Suite 2525, Baltimore, Maryland 21202. Attorneys at Brower Piven have combined experience litigating securities and class action cases of over 40 years. If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.