NEW YORK, June 28, 2002 (PRIMEZONE) -- A class action complaint has been filed in the United States District Court for the Northern District of Georgia on behalf of all persons or entities who purchased Mirant Corporation, Inc. ("Mirant" or the "Company") securities (NYSE:MIR) between January 19, 2001 and May 6, 2002, both dates inclusive (the "Class Period"). Mirant Corporation, S. Marce Fuller, Raymond D. Hill, Richard J. Pershing, and James A. Ward 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 a material portion of the revenue and earnings defendants caused Mirant to report during the Class Period were derived from the improper transactions and tactics Mirant employed in the California energy market; as a result, the revenue and earnings associated with these transactions were allegedly reported in violation of generally accepted accounting principles ("GAAP"). The Complaint alleges that during the Class Period, defendants manipulated the supply and price of electrical power, especially in California's deregulated market. Mirant's alleged participation in a scheme to inflate the price of wholesale power in California resulted in the Company overcharging California energy providers on contracts which produced over $2 billion in revenue. The Federal Energy Regulatory Commission and the Attorney General of California are both investigating the propriety of Mirant's sale of electrical power in California.
Beginning in March of 2002 Mirant announced a string of investigations into its energy trading and energy sales practices. This string of bad news culminated on May 7, 2002, when an article in The New York Times reported that documents uncovered in the investigation of Enron Corp. revealed that Mirant might have engaged in fraudulent practices similar to those employed by Enron. The financial market's reaction to this news caused the price of Mirant's stock to lose 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.
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 Mirant securities between January 19, 2001 and May 6, 2002, you may, no later than July 29, 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.