NEW YORK, May 24, 2002 (PRIMEZONE) -- A class action complaint has been filed in the United States District Court for the Eastern District of Michigan, civil action number 02-CV-40140FL, on behalf of all persons or entities who purchased CMS Energy Corporation. ("CMS" or the "Company") common stock (NYSE:CMS) between August 3, 2000 and May 10, 2002, both dates inclusive (the "Class Period"). CMS, William T. McCormick, Jr., David W. Joos, and Alan M. Wright are named as defendants in the action.
The Complaint alleges that defendants violated section 10(b) of the Securities and Exchange Act of 1934, and SEC Rule 10b-5 by issuing a series of materially false and misleading statements concerning its business and financial condition. Particularly, it is alleged that defendants improperly recognized approximately $4.4 billion in revenue from engaging in "round trip" transactions where, in fact, no actual profit or loss was generated from the transactions. The improperly recognized revenue was reported in the Company's quarterly and annual press releases, and in filings with the SEC during the Class Period. On May 10, 2002, CMS announced that the SEC was investigating the round trip transactions. In response to this news, the price of CMS common stock dropped from a high of $20.06 to $15.72.
Plaintiff is represented by the law firm of Rabin & Peckel LLP. Rabin & Peckel 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. You can learn more information about Rabin & Peckel LLP at www.rabinlaw.com.
If you purchased CMS common stock between August 3, 2000 and May 10, 2002, you may, no later than July 16, 2002 move the Court to serve as lead plaintiff. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this action as a lead plaintiff online at www.rabinlaw.com. If you wish to discuss this action further or have any questions concerning this announcement, or your rights or interests, please contact plaintiff's counsel, Eric Belfi or Sharon Lee, Rabin & Peckel LLP, 275 Madison Avenue, New York, NY 10016, by telephone at (800) 497-8076 or (212) 682-1818, by facsimile at (212) 682-1892, or by e-mail at email@rabinlaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca