CHICAGO, June 17, 2002 (PRIMEZONE) -- Much Shelist Freed Denenberg Ament & Rubenstein, P.C. announces that class action lawsuits are pending in the United States District Court for the Eastern District of Michigan on behalf of purchasers of the securities of CMS Energy Corp. ("CMS" or the "Company") (NYSE:CMS) between August 3, 2000 and May 10, 2002, inclusive ("Class Period").
It has been alleged that CMS; William T. McCormick Jr., Chairman and CEO; David W. Joos, President and Chief Operating Officer; and Alan M. Wright, Chief Financial and Administrative Officer, violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of materially false and misleading statements to the market.
According to the allegations, CMS had, throughout the Class Period, improperly recognized approximately $4.4 billion in revenues by engaging in transactions lacking any economic substance using what are known as "round-trip" trading transactions. The improperly recognized revenues were reported in the Company's quarterly and annual press releases and in financial filings with the Securities and Exchange Commission ("SEC"), throughout the Class Period. On May 9, 2002, The Wall Street Journal reported that CMS had engaged in round-trip trades with Dynegy, Inc. On May 10, 2002, CMS announced that the SEC was investigating the propriety of its "round-trip" trading practices. On May 13, 2002, Reliant Resources, Inc. disclosed that it had also engaged in round-trip trades with CMS. In response to these announcements, CMS' common stock price collapsed, falling from a high of $20.06 on May 10, 2002 to a low of $15.72 on May 13, 2002 -- a drop of more than 21% on extremely heavy trading volume.
Much Shelist is currently investigating these claims. If you wish to discuss your rights and interests, or if you have information relevant to the lawsuit, you may contact Carol V. Gilden or Michael E. Moskovitz at Much Shelist Freed Denenberg Ament & Rubenstein, P.C., by calling a toll-free number 1-800-470-6824, or by sending an e-mail to investorhelp@muchshelist.com. Your e-mail should refer to CMS.
If you purchased CMS securities during the Class Period and if you meet certain other legal requirements, you may file a motion in the court where the lawsuit has been filed to serve as a lead plaintiff. You must file your motion no later than July 16, 2002.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. The requirements for serving as a lead plaintiff are set forth in the Private Securities Litigation Reform Act of 1995 (15 U.S.C. Section 78u-4).
Much Shelist's history is one of experience, leadership and results. For more than 25 years, Much Shelist has represented plaintiffs in class action litigation in federal and state courts across the United States. The firm has successfully prosecuted cases involving securities fraud, antitrust violations, consumer fraud, unlawful business practices and insurance company fraud. Under Much Shelist's leadership, class members have obtained judgments and settlements in excess of $4 billion.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca