PHILADELPHIA, July 8, 2002 (PRIMEZONE) -- On May 22, 2002, the law firm of Berger & Montague, P.C. (http://www.bergermontague.com) filed a class action suit against CMS Energy Corporation ("CMS" or the "Company") (NYSE:CMS) (NYSE:CMP) and certain of its principal officers and directors in the United States District Court for the Eastern District of Michigan on behalf of all persons or entities who purchased the publicly traded securities of CMS between August 3, 2000 and May 10, 2002 the ("Class Period").
The complaint charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of materially false and misleading statements to the market between August 3, 2000 and May 10, 2002. According to the complaint, CMS had, admittedly, throughout the Class Period, improperly recognized $4.4 billion in revenues by engaging in transactions lacking any economic substance using what are known as "round-trip" trading transactions. The improperly recognized revenues were, according to the complaint, reported in the Company's quarterly and annual press releases and in financial filings with the Securities and Exchange Commission ("SEC") throughout the Class Period. On May 9, 2002, The Wall Street Journal reported that CMS had engaged in round trip trades with Dynegy, Inc. On May 10, 2002, CMS announced that the SEC was investigating the propriety of its "round-trip" trading practices. On May 13, 2002, Reliant Resources, Inc. disclosed that it had also engaged in round trip trades with CMS. In response to the announcements, CMS' common stock price collapsed, falling from a high of $20.06 on May 10, 2002 to a low of $15.72 on May 13, 2002--a drop of more than 21% on extremely heavy trading volume.
If you purchased CMS securities during the period from August 3, 2000 through May 10, 2002, inclusive, you may, no later than July 16, 2002, move to be appointed as a Lead Plaintiff. A Lead Plaintiff is a representative party that acts on behalf of other class members in directing the litigation. The Private Securities Litigation Reform Act of 1995 directs Courts to assume that the class member(s) with the "largest financial interest'' in the outcome of the case will best serve the class in this capacity. Courts have discretion in determining which class member(s) have the "largest financial interest,'' and have appointed Lead Plaintiffs with substantial losses in both absolute terms and as a percentage of their net worth. If you have sustained substantial losses in CMS securities during the Class Period, please contact Berger & Montague, P.C. at investorprotect@bm.net for a more thorough explanation of the Lead Plaintiff selection process.
The law firm of Berger & Montague, P.C. has over 50 attorneys, all of whom represent plaintiffs in complex litigation. The Berger firm has extensive experience representing plaintiffs in class action securities litigation and has played lead roles in major cases over the past 25 years which have resulted in recoveries of several billion dollars to investors. The firm is currently representing investors as lead counsel in actions against Rite Aid, Sotheby's, Waste Management, Inc., Sunbeam, Boston Chicken and IKON Office Solutions, Inc. The standing of Berger & Montague, P.C. in successfully conducting major securities and antitrust litigation has been recognized by numerous courts. For example:
"Class counsel did a remarkable job in representing the class interests." In Re: IKON Offices Solutions Securities Litigation. Civil Action No. 98-4286(E.D.Pa.) (partial settlement for $111 million approved May, 2000).
"...(Y)ou have acted the way lawyers at their best ought to act. And I have had a lot of cases...in 15 years now as a judge and I cannot recall a significant case where I felt people were better represented than they are here ... I would say this has been the best representation that I have seen." In Re: Waste Management, Inc. Securities Litigation, Civil Action No. 97-C 7709 (N.D. Ill.) (settled in 1999 for $220 million).
If you purchased CMS securities during the Class Period, please visit our website at www.bergermontague.com to view the complaint and join the class action or if you have any questions concerning this notice or your rights with respect to this matter, please contact:
Sherrie R. Savett, Esquire
Barbara A. Podell, Esquire
Robin Switzenbaum, Esquire
Kimberly A. Walker, Investor Relations Manager
Berger & Montague, P.C.
1622 Locust Street
Philadelphia, PA 19103
Phone: 888-891-2289 or 215-875-3000
Fax: 215-875-5715
Website: http://www.bergermontague.com
e-mail: InvestorProtect@bm.net
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca