MINNEAPOLIS, April 1, 2004 (PRIMEZONE) -- Lockridge Grindal Nauen P.L.L.P. announced today that a class action lawsuit has been filed in the United States District Court for the Southern District of Texas, Houston Division on behalf of purchasers of El Paso Corporation ("El Paso" or the "Company") (NYSE:EP) publicly traded securities during the period between February 22, 2000 and February 17, 2004, inclusive (the "Class Period").
The complaint charges defendants El Paso, Mark Leland, William A. Wise, H. Brent Austin, Ronald L. Kuehn, Jr. and D. Dwight Scott with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. More specifically, the complaint alleges that throughout the Class Period, defendants issued a series of statements to the market which were materially false and misleading as they failed to disclose and/or misrepresented the following material adverse facts which were then known to defendants or recklessly disregarded by them: (1) El Paso's reporting of proved oil and gas reserves was overstated by 41%; (2) the Company's estimate of discounted future cash flows was overstated; and (3) El Paso's method of estimating reserves and discounted future cash flows deviated from industry standards and violated rules of the Securities and Exchange Commission. As a result of defendants' conduct, the price of El Paso securities was materially overstated throughout the Class Period.
On February 17, 2004, El Paso announced that the Company had overstated its reported reserves by 41% or 1.8 trillion cubic feet, and that, as a result, it would have to take a $1 billion pretax charge in the fourth quarter of 2003. In response to this revelation, El Paso common stock fell 18% on unusually heavy trading volume of 57 million shares, to close at $7.26 a share on February 18, 2004.
If you bought El Paso publicly traded securities between February 22, 2000 and February 17, 2004, inclusive, and you wish to serve as lead plaintiff, you must make a motion to be appointed before the Court no later than April 19, 2004. Any member of the purported class may move the Court to serve as lead plaintiff through Lockridge Grindal Nauen P.L.L.P. or other counsel of their choice, or may choose to do nothing and remain an absent class member.
Plaintiffs are represented by the law firm of Lockridge Grindal Nauen P.L.L.P. The firm has considerable experience in prosecuting securities class actions, has extensive experience representing shareholders in class actions, and has successfully recovered billions of dollars for defrauded investors and shareholders. The reputation and expertise of the firm in shareholder and other class action litigation have been repeatedly recognized by courts, which have appointed the firm to major positions in complex multi-district and consolidated litigations. Lockridge Grindal Nauen P.L.L.P. has offices in Minneapolis and Washington, D.C.
If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you are encouraged to call or write:
Karen Hanson Riebel, Esq. Lockridge Grindal Nauen P.L.L.P. 100 Washington Avenue South Suite 2200 Minneapolis, MN 55401 (612) 339-6900 khriebel@locklaw.com