HOUSTON, May 16, 2002 (PRIMEZONE) -- On May 16, 2002, The Emerson Firm, a securities class action trial law firm headquartered in Houston, filed a class action complaint (the "Complaint") in the United States District Court for the Southern District of Texas-Houston Division on behalf of all persons who purchased the securities of Reliant Energy, Inc. (NYSE:REI) and Reliant Resources, Inc. (NYSE:RRI) (collectively, the "Reliant Companies") in the period from May 14, 1999 through May 9, 2002, inclusive (the "Class Period"). Named as defendants in the Complaint are the Reliant Companies and certain individual officers and/or directors of the Reliant Companies.
The Complaint alleges that the defendants violated Sections 10(b) and 20 of the Securities Exchange Act of 1934 by making false and misleading representations concerning the financial results of the Reliant Companies throughout the Class Period. On May 10, 2002 and May 13, 2002, defendants disclosed that the revenue of the Reliant Companies had been artificially inflated due to power trading transactions involving simultaneous purchases and sales at the same price (referred to as "round-trip" trades). Defendants further disclosed that these "round trip" trades had the effect of materially and artificially increasing reported revenues over the three-year period of 1999, 2000 and 2001. Plaintiff seeks to recover damages on behalf of all Class members.
The Plaintiff is represented by The Emerson Firm which has significant experience prosecuting class actions on behalf of investors. The Firm has offices in both Houston and Little Rock, Arkansas, but represents investors throughout the country. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact the Investor Relations Department of The Emerson Firm by calling Ms. Tanya Autry toll free at (800) 663-9817 or by e-mail at the address below. The Emerson Firm is active in securities class actions and has recently filed cases against Dynegy, Seitel, and VeriSign. Name partner, John Emerson, has twenty years of experience in the federal district courts in Houston where the Reliant case is pending.
If you purchased securities of the Reliant Companies from May 14, 1999 through May 9, 2002, and wish to act as a lead plaintiff, you may move the Court to act in that capacity not later than July 15, 2002. You may e-mail or call at:
Ms Tanya Autry Tel.: (800) 663-9817 E-mail: tanya.autry@worldnet.att.net
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.