NEW YORK, Sept. 4, 2002 (PRIMEZONE) -- The law firm of Wechsler Harwood LLP ("Wechsler Harwood") announces that an amended class action complaint has been filed in the United States District Court for the Southern District of Texas on behalf all persons who purchased or acquired El Paso Corp. (NYSE:EP) ("El Paso" or the "Company") securities between January 29, 2001 through May 29, 2002, inclusive (the "Class Period") against defendants El Paso and certain of its officers. The class also includes holders of Coastal Corp. ("Coastal") securities who acquired El Paso common stock as a result of El Paso's acquisition of Coastal.
The amended complaint charges El Paso, as well as its Chief Executive Officer, Chief Financial Officer and President, with violations of Section 11 of the Securities Act of 1933 and Sections 10(b) and 20(a) of the Securities and Exchange Act of 1934. The alleged violations, according to the amended complaint, stem from materially false and misleading statements issued by the defendants in relation to the Coastal acquisition and during the Class Period which caused El Paso stock to trade at artificially inflated prices. The action seeks to recover losses suffered by investors who purchased or acquired El Paso stock at these artificially inflated prices during the class period.
In particular, the amended complaint alleges that, during the class period, El Paso manipulated both energy prices and accounting regulations in order to report materially inflated revenues from its energy-trading operations and in order to hide billions of dollars of debt in off-balance-sheet partnerships. Since May 29, 2002, El Paso shares lost over 66% of their remaining value, falling from approximately $35 per share to below $11 per share, after: (i) the extent of El-Paso's off balance sheet debt began to be revealed beginning in late May 2002; (ii) news emerged in June 2002 that the SEC and the Justice Department had initiated inquiries into El Paso's energy-trading operations and into the possible reporting of inflated revenues through sham trading transactions; and (iii) El Paso, in light of these events, announced a restructuring in which it cut its energy-trading workforce in half and moved $2 billion in off-balance-sheet debt back onto its balance sheet.
If you are a member of the Class described above, and if you meet certain other legal requirements, you may, no later than September 16, 2002, move the Court to serve as a lead plaintiff. 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." 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).
Wechsler Harwood has taken a leading role in many important actions on behalf of defrauded shareholders. The Wechsler Harwood website (www.whesq.com) has more information about the firm. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following:
Wechsler Harwood LLP 488 Madison Avenue, 8th Floor New York, New York 10022 Toll Free Telephone: (877) 935-7400 Craig Lowther, Wechsler Harwood Shareholder Relations Department: clowther@whhf.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca