WASHINGTON, Nov. 8, 2002 (PRIMEZONE) -- The Law Office of Mark McNair announces a securities class action lawsuit has been filed against American Electric Power Co. (NYSE:AEP). The complaint is on behalf of, and seeks damages for shareholders who purchased the stock from May 17, 1999 through October 9, 2002, inclusive (the "Class Period").
The complaint alleges that AEP and certain of its officers, directors and three underwriters violated the federal securities laws by issuing materially false and misleading statements throughout the Class Period that had the effect of artificially inflating the market price of the Company's securities.
Among other things, the complaint alleges: (1) AEP failed to disclose that it was engaging in electricity trades transactions involving sequential trades with the same terms and counterparties; (2) AEP overstated its revenues in SEC filings by including such revenue; and (3) AEP lacked sufficient management controls to prevent such activities by its traders. AEP first denied that it engaged in activities referred to as "wash" or "round-trip" trading, but later admitted to engaging in such trades. On August 30, 2002 AEP revealed that the SEC had initiated an informal inquiry into its trading practices. On October 9, 2002, AEP disclosed that it had fired five employees for reporting inaccurate price information and its stock dropped to a 52-week low of $15.10.
The Law Office of Mark McNair is currently investigating these claims. If you were a purchaser of AEP during the period indicated and want to discuss your legal rights or if you have information relevant to the lawsuit, you may e-mail or call the Law Office of Mark McNair. You may contact the Law Office of Mark McNair at 1101 30th Street N.W., Suite 500, Washington, D.C, 20007, by telephone at (877) 511.4717 or (202) 872.4717, or via e-mail at mcnair@justice4investors.com.
If you are a member of the Class, you may move the court no later than December 30, 2002 to serve as lead plaintiff for the Class. In order to serve as lead plaintiff, you must meet certain legal requirements. To be a member of the class you need not take any action at this time, and you may retain counsel of your choice.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca