LOS ANGELES, Aug. 9, 2002 (PRIMEZONE) -- On July 18, 2002, Glancy & Binkow LLP commenced a class action lawsuit in the U.S. District Court for the Southern District of Texas on behalf of a class (the "Class") and seeks to represent all persons who purchased securities of El Paso Corporation ("El Paso" or the "Company") (NYSE:EP) between January 29, 2001 and May 29, 2002, inclusive (the "Class Period"). Glancy & Binkow LLP is continuing its investigation into El Paso's misconduct.
A copy of the complaint is available from the court or from Glancy & Binkow LLP. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy & Binkow LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9161 or Toll Free at (888) 773-9224 or by e-mail to info@glancylaw.com.
The Complaint charges El Paso and certain of its officers and directors with violations of federal securities laws. Among other things, plaintiff claims that defendants' material omissions and the dissemination of materially false and misleading statements concerning the nature of El Paso's business operations and revenues caused El Paso's stock price to become artificially inflated, inflicting damages on investors. The Complaint charges that defendants manipulated both energy prices and accounting regulations in order to report materially inflated revenues from El Paso's energy-trading operations and to hide billions of dollars of debt in off-balance-sheet partnerships. Since May 29, 2002, El Paso stock lost more than 66% of its remaining value, falling from approximately $35 per share to below $11 per share, after: (I) the extent of El Paso's off-balance-sheet debt began to be revealed beginning in late May 2002; (ii) news emerged in June 2002 that the SEC and the Justice Department had initiated inquiries into El Paso's energy-trading operations and the possible reporting of inflated revenues through sham trading transactions; and (iii) El Paso, in light of these events, announced a restructuring in which it cut its energy-trading workforce in half and moved $2 billion in off-balance-sheet debt back onto its balance sheet.
All persons who purchased securities of El Paso between January 29, 2001 and May 29, 2002, may move the Court not later than September 17, 2002, to serve as lead plaintiff, however, you must meet certain legal requirements.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Glancy & Binkow LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.