NEW YORK, June 19, 2002 (PRIMEZONE) -- Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com) has filed a class action lawsuit against Mirant Corporation ("Mirant" or the "Company") (NYSE:MIR) (formerly known as "Southern Energy Company") and four of the Company's senior officers on behalf of investors who purchased or otherwise acquired the securities of Mirant during the period between January 19, 2001 and May 6, 2002, inclusive (the "Class Period"). The lawsuit, filed in the United States District Court for the Northern District of Georgia (Atlanta Division) under Index Number 02-CV-1685, charges Mirant and four of the Company's senior officials with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
The Complaint alleges that during the Class Period, defendants conspired to manipulate the supply and price of electricity in the wholesale electricity market. As a result of defendants' manipulation, Mirant (a global competitive energy company) reported quarter after quarter of "record" financial results throughout the Class Period. It is further alleged that defendants made materially false and misleading statements regarding the Company's financial condition and business.
According to the Complaint, the Company's financial results were artificially inflated through the use of fraudulent activities such as "gaming the market" and "double dipping," or selling reserves already owed to California to other purchasers, and otherwise artificially manipulating the market price of energy in California, in violation of Generally Accepted Accounting Principles ("GAAP").
On March 12, 2002, Mirant announced that it was one of six companies identified by the Public Utility Commission of Texas as having "over-scheduled power requirements in the Texas wholesale energy market..." Thereafter, the State of California sued Mirant alleging that the Company overcharged the State during its power crisis. On May 7, 2002, the New York Times reported that documents in the Enron investigation revealed that Mirant might have engaged in fraudulent practices similar to Enron in the California market. The market reaction to the New York Times article was swift. The price of Mirant stock lost over 80% of its value, falling from its Class Period high of $50.00 per share to close at $9.75 per share on May 7, 2002, on a trading volume of over 7 million shares.
If you purchased or otherwise acquired the securities of Mirant during the Class Period, you have until July 29, 2002 to ask the Court to appoint you as one of the lead plaintiffs for the Class. In order to serve as lead plaintiff, you must meet certain legal requirements. If you wish to review a copy of the Complaint, to discuss this action or have any questions, please contact Andrew G. Tolan, Esq. of the Pomerantz firm at 888-476-6529 (or (888) 4-POMLAW), toll free, or at agtolan@pomlaw.com by e-mail. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
The Pomerantz firm, which has offices in New York and Chicago, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz firm pioneered the field of securities class actions. Today, more than 50 years later, the Pomerantz firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca