CHICAGO, Ill., Aug. 8, 2002 (PRIMEZONE) -- Much Shelist Freed Denenberg Ament & Rubenstein, P.C. has filed a class action lawsuit against Nicor, Inc. ("Nicor" or the "Company") (NYSE:GAS) and certain of its officers and directors in the United States District Court for the Northern District of Illinois. The shareholder lawsuit is on behalf of all persons and entities who purchased common stock during the period April 18, 2000 through July 18, 2002, inclusive ("Class Period").
The Complaint alleges that Nicor; Thomas L. Fisher, Nicor's Chairman of the Board and Chief Executive Officer; and Kathleen L. Halloran, Nicor's Executive Vice President of Finance and Administration, 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 during the Class Period. These alleged misstatements had the effect of artificially inflating the price of Nicor common stock.
The Complaint alleges that during the Class Period defendants failed to disclose and/or misrepresented, among other things, that the Company had manipulated its gas cost Performance Based Rate ("PBR") plan in order to artificially inflate its operating results and had failed to disclose accounting irregularities at its 50% owned joint venture, Nicor Energy LLC. After the market closed on July 18, 2002, Nicor issued a press release announcing that it may restate prior results in response to improprieties at its gas business. The Company further disclosed that the Illinois Commerce Commission and other governmental agencies were reviewing allegations that Nicor had acted improperly in connection with the PBR program. Nicor also reported that results for the six months ended June 30, 2002 were negatively impacted by accounting irregularities at Nicor Energy LLC, which is a 50-50 joint venture with Dynegy Inc.
On July 19, 2002, the price of Nicor shares plunged 40% from the previous day's close of $38.01 to close at $22.75.
Plaintiff seeks to recover damages on behalf of all those who purchased Nicor common stock during the Class Period. If you purchased Nicor common stock during the Class Period and either lost money on the transactions or still hold the common stock, you may, if you meet certain other legal requirements, file a motion to serve as a lead plaintiff. You must file your motion no later than September 20, 2002.
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 Nicor.
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.