NEW YORK, March 21, 2002 (PRIMEZONE) -- A class action complaint has been filed in the United States District Court for the Southern District of New York, civil action number 02-2268, on behalf of all persons or entities who purchased NewPower Holdings, Inc. ("NewPower" or the "Company") common stock (NYSE:NPW) between October 5, 2000 and December 5, 2001, both dates inclusive (the "Class Period").
This action, based on violations of section 10(b) of the Securities Exchange Act of 1934, and section 11 of the Securities Act of 1933, charges NewPower, certain of its officers and directors, and the underwriters of its October 5, 2000 Offering with issuing false and misleading statement concerning its business and financial condition. In particular, the complaint alleges that the Registration Statement and Prospectus for NewPower's Offering on October 5, 2000 contained material misrepresentations and omissions concerning the adequacy of risk management systems put in place in conjunction with NewPower affiliate, Enron Energy Services, Inc. ("EES"), and the true nature and purpose of certain related party transactions, including transactions pursuant to which Enron attempted to hedge its investment in NewPower through use of a partnership known as "Raptor III." In addition, it is alleged that NewPower and certain of its officers and directors misrepresented or failed to disclose: (i) that the Company had not adopted effective and appropriate hedging strategies against volatility of commodity prices; (ii) that the Company was on course to achieve its financial goals and had sufficient liquidity to do so; and (iii) that certain forward contracts with EES posed little risk of loss when in truth and in fact they were driving the Company toward insolvency, and were largely structured to protect and enrich Enron, NewPower's controlling shareholder. The Complaint alleges that as a result of these false and misleading statements the price of NewPower common stock was artificially inflated throughout the Class Period causing plaintiff and the other members of the Class to suffer damages.
Plaintiff is represented by the law firm of Rabin & Peckel LLP. Rabin & Peckel and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States. You can learn more information about Rabin & Peckel at www.rabinlaw.com.
If you purchased NewPower common stock during the Class Period described above, you may, no later than April 29, 2002, move the Court to serve as lead plaintiff. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this action as a lead plaintiff online at www.rabinlaw.com. If you wish to discuss this action further or have any questions concerning this announcement, or your rights or interests, please contact plaintiff's counsel, Eric Belfi or Maurice Pesso, Rabin & Peckel LLP, 275 Madison Avenue, New York, NY 10016, by telephone at (800) 497-8076 or (212) 682-1818, by facsimile at (212) 682-1892, or by e-mail at: email@rabinlaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.