NEW YORK, May 2, 2002 (PRIMEZONE) -- A securities class action lawsuit was filed in the Southern District of Texas, on behalf of all persons who purchased common stock of Dynegy, Inc. (NYSE:DYN) ("Dynegy" or the "Company") during the period between April 17, 2001 and April 24, 2002, inclusive (the "Class Period"). A copy of this complaint is available from the Court or from Abbey Gardy, LLP. Please contact us by phone at (800) 889-3701 or by email at JHaas@abbeygardy.com.
The Complaint alleges that Dynegy and certain of its top executives violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. The Complaint charges that during the Class Period, defendants issued a series of material misrepresentations to the market, thereby artificially inflating the price of Dynegy securities in order to pursue an accelerated securities sale program. Specifically, the Complaint alleges that defendants used a practice, which the Company called "Project Alpha," to create cash flow and bolster its perception in the financial community. The Complaint further alleges that defendants engaged in a scheme that: (i) artificially inflated the price of Dynegy's stock during the Class Period; (ii) deceived the investing public into acquiring Dynegy's securities at artificially inflated prices; (iii) allowed the Individual Defendants to extract millions of dollars in bonuses by creating the appearance that the Company's phenomenal cash flow was a result of operations growth; and (iv) allowed Dynegy to sell nearly half a billion dollars of its own securities to the unsuspecting public. The Complaint seeks damages on behalf of all purchasers of Dynegy publicly traded securities during the Class Period.
Plaintiff seeks to recover damages on behalf of all those who purchased or otherwise acquired Dynegy securities during the Class Period. If you purchased or otherwise acquired securities during the Class Period, and either lost money on the transactions or still hold the securities, you may wish to join in the action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than June 25, 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 plaintiffs." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Abbey Gardy, LLP, or other counsel of your choice, to serve as your counsel in this action.
Abbey Gardy, LLP has been retained as one of the law firms to represent the Class. The attorneys at Abbey Gardy, LLP have extensive experience in securities class action cases, and have played lead roles in major cases resulting in the recovery of hundreds of millions of dollars to investors. If you would like to discuss this action or if you have any questions concerning this Notice or your rights as a potential class member or lead plaintiff, you may contact:
Jennifer Haas Nancy Kaboolian, Esq. Abbey Gardy, LLP 212 East 39th Street New York, New York 10016 (800) 889-3701 Jhaas@abbeygardy.com or NKaboolian@abbeygardy.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca