NEW YORK, June 21, 2002 (PRIMEZONE) -- A class action complaint has been filed in the United States District Court for the Southern District of Texas, civil action number H-02-2316, on behalf of all persons or entities who purchased Reliant Resources, Inc. ("Reliant" or the "Company") securities (NYSE:RRI) between May 14, 1999 and May 5, 2002, both dates inclusive (the "Class Period"). Reliant Resources, Inc., R. Steve Letbetter, Steven W. Naeve, and Mary P. Ricciardello are named as defendants in the action.
To discuss this action, 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.
The Complaint alleges that defendants violated section 11 of the Securities Act of 1933, 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 Reliant's business and financial condition.
The complaint alleges that the Texas-based Reliant Resources, Inc. issued statements regarding Reliant Resources's quarterly and annual financial performance and filed reports confirming such performance with the United States Securities and Exchange Commission ("SEC"). The complaint alleges that these statements were materially false and misleading because, among other things: (i) the Company's revenues in 1999 and 2000 were materially overstated because 10% of such revenues represented purchases and sales with the same counter-party at the same price, or so-called "round trip trades"; and (ii) the Company improperly accounted for certain transactions in its conventional accrual accounts as cash flow hedges.
On May 10, 2002, the last day of the Class Period, Reliant Resources announced that it was canceling a $500 million private placement debt offering that had been priced on May 9, 2002, due in part, to having engaged in "round trip" trades. Following this announcement, Reliant Resources common stock fell from a high of $15.10 on May 9, 2002 to a low of $11.10 on May 10, 2002, or a single-day decline of more than 25% on high trading volume and a decline of more than 55% from the Class Period high.
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 Reliant securities between May 14, 1999 and May 5, 2002, you may, no later than July 15, 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