NEW YORK, Oct. 10, 2002 (PRIMEZONE) -- Wolf Popper LLP has filed a securities fraud class action complaint against DPL Inc. (NYSE:DPL), its Chairman Peter H. Forster, and two of its senior officers, on behalf of purchasers of DPL common stock from March 30, 1999 through August 14, 2002. A copy of the complaint is available from the U.S. District Court for the Southern District of Ohio -- Western Division.
The plaintiff alleges in the class action that, during the Class Period (March 30, 1999 through August 14, 2002, inclusive), defendants falsely represented that the Company's portfolio of financial assets, comprising approximately 25% of DPL's total assets, were "highly diversified both in terms of geography and industry" and were a hedge against the Company's energy business. Defendants failed to disclose that DPL's investment portfolio was highly concentrated in Argentinian debt securities and other securities that were highly risky.
The facts began to be revealed after the close of regular trading on July 1, 2002, when DPL issued a press release announcing that it was revising downward its estimate of earnings for the full year 2002, largely as a result of a $110 million, or $0.92 per share, write-down of its financial assets. The write-down related primarily to investments in Latin America.
DPL's results for the second quarter of 2002 were subsequently reported on July 29, 2002 precipitating a review of DPL's debt for possible downgrading. On August 14, 2002, DPL revealed further information concerning DPL's investment portfolio and a contingent obligation to fund up to another $430 million of investments.
The plaintiff alleges that defendants engaged in this scheme to enrich themselves. For example, in 2000 defendant Forster received $1.2 million for managing the company's financial assets and $2.1 million when the price of DPL common stock reached $26 per share.
During the Class Period, shares of DPL common stock closed at as high as $33.68 per share. When the truth about the losses in DPL's portfolio of financial assets was revealed after the close of regular trading on July 1, 2002, the price of DPL common stock fell to $21.57 per share. DPL common stock continued to decline as additional information was revealed. DPL common stock closed on October 2, 2002 at $16.60 per share.
Any member of the class who desires to be appointed lead plaintiff in the class action must file a motion with the Court no later than December 9, 2002. Class members must meet certain legal requirements to serve as a lead plaintiff. If you have questions or information regarding this action, or if you are interested in serving as a lead plaintiff in this action, you may call or write:
Wolf Popper LLP, Robert C. Finkel, Esq. 845 Third Avenue, New York, NY 10022-6689 Tel.: 212.451.9620, Toll Free: 877.370.7703; Fax: 212.486.2093, Toll Free: 877.370.7704 Email: irrep@wolfpopper.com; website: www.wolfpopper.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca