NEW YORK, June 27, 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 Civ. 4949, on behalf of all persons or entities who purchased Duke Energy Corporation. ("Duke Energy" or the "Company") securities (NYSE:DUK) between July 22, 1999 and May 17, 2002, both dates inclusive (the "Class Period"). Duke Energy Corporation, Richard Priory, Robert Brace, David L. Hauser, Keith G. Butler, Sandra P. Meyer, Jeffrey L. Boyer, and Richard J. Osborne are named as defendants in the action.
The Complaint alleges that defendants 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 material misrepresentations to the market between July 22, 1999 and May 17, 2002, thereby artificially inflating the price of Duke Energy securities. The complaint also alleges that during the Class Period the defendants issued numerous statements and filed quarterly and annual reports with the SEC which described the Company's increasing revenues and financial performance. The complaint alleges that these statements were materially false and misleading because they failed to disclose and/or misrepresented the following adverse facts, among others: (1) that the Company had engaged in approximately $1 billion of "round-trip" energy trades that provided no economic benefit for the Company; (2) that the Company lacked the necessary internal controls to adequately monitor the trading of its power; and (3) that as a result, the value of the Company's revenues and financial results were materially overstated at all relevant times.
On May 17, 2002, the last day of the Class Period, the Company issued a press release announcing that it had "analyzed its trades for the three-year period from 1999 through 2001 to identify those trades which may have some of the characteristics of sell/buy-back trades." These trades, known as "round-trip" or "wash" transactions, involve the simultaneous buying and trading of power in the same price and same amount and provide no economic benefit to the Company. Following this announcement, shares of Duke Energy fell $1.18 per share to close at $33.52 per share, after reaching a split-adjusted Class Period high of $44.97 on November 30, 2000.
Plaintiff is represented by the law firm of Rabin & Peckel LLP. Rabin & Peckel LLP 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 LLP at www.rabinlaw.com.
If you purchased Duke Energy securities between July 22, 1999 and May 17, 2002, you may, no later than July 22, 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 Sharon Lee, 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