NEW YORK, Nov. 5, 2002 (PRIMEZONE) -- Notice is hereby given that a class action lawsuit was commenced in the United States District Court for the Northern District of Texas, Dallas Division, on behalf of all purchasers of TXU Corp. ("TXU" or the "Company") (NYSE:TXU) securities between April 25, 2002 and October 11, 2002, inclusive (the "Class Period"). A copy of the complaint filed in this action can be viewed on the firm's website at www.faruqilaw.com.
The complaint charges defendants with violations of federal securities laws by, among other things, issuing a series of materially false and misleading press releases concerning TXU's financial results and business prospects. Specifically, the complaint alleges that TXU continuously touted that its European operations were improving and would report EPS of $4.35+ and $4.60+ in 2002 and 2003, respectively. Based on these false statements, TXU's stock traded at artificially inflated levels throughout the class period, up to $56 per share allowing defendants to complete a secondary offering of 11.8 million shares of common stock, raising nearly a billion dollars. On October 4, 2002, TXU revealed that because of problems in Europe, the Company would report 2002 EPS of only $3.25 resulting in a decline to $27 per share from $40 per share the prior week. Defendants reassured the market that the Company was strong and the dividend was "sound and secure." Then on October 14, 2002 before the market opened, TXU announced that it was cutting its dividend 80% to $0.125 per share and was selling all its European assets. As a result, TXU's stock immediately collapsed to $10.10 per share before closing at $12.94; a one day drop of 31% on volume of 39 million shares.
Plaintiff seeks to recover damages on behalf of herself and all other individual and institutional investors who purchased or otherwise acquired TXU securities between April 25, 2002 through October 11, 2002, excluding defendants and their affiliates. Plaintiff is represented by Faruqi & Faruqi, LLP, a law firm with extensive experience in prosecuting class actions, and significant expertise in actions involving corporate fraud.
If you wish to obtain information concerning joining this action you can do so under the "Join Lawsuit" section of our website at www.faruqilaw.com.
If you purchased TXU securities during the Class Period, you may, not later than December 14, 2002, move the court to serve as lead plaintiff of the class. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action, or have any questions concerning this notice or your rights or interests, please contact:
ERIC CRUSIUS, ESQ.
ANTHONY VOZZOLO, ESQ.
FARUQI & FARUQI, LLP
320 East 39th Street
New York, NY 10016
Telephone: (877) 247-4292 or (212) 983-9330
e-mail: Ecrusius@faruqilaw.com
Avozzolo@faruqilaw.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca