LOS ANGELES, Sept. 5, 2002 (PRIMEZONE) -- Notice is hereby given that Glancy & Binkow LLP commenced a Class Action lawsuit in the United States District Court for the District of Minnesota on behalf of a class (the "Class") consisting of all persons who purchased securities of Xcel Energy, Inc. ("Xcel" or the "Company") (NYSE:XEL) between January 31, 2001 to July 26, 2002, inclusive (the "Class Period").
A copy of the Complaint is available from the court or from Glancy & Binkow LLP. Please contact us by phone at (310) 201-9161 or Toll Free at (888) 773-9224 or by email at info@glancylaw.com.
The Complaint charges Xcel and certain of its officers and directors with violations of federal securities laws. Among other things, plaintiff claims that defendants' material omissions and the dissemination of materially false and misleading statements regarding the nature of Xcel's financial performance and the financial performance of NRG Energy, Inc. ("NRG"), the Company's majority-owned subsidiary caused Xcel's stock price to become artificially inflated, inflicting damages on investors. The Complaint alleges that defendants failed to disclose and/or misrepresented the following adverse facts, among others: (i) that the Company had engaged in "round-trip" energy trades that provided no economic benefit for the Company; (ii) that Xcel's and NRG's credit agreements with lenders contained cross-default provisions and covenants, the result of which was that in the event of a default by NRG, among other adverse effects, Xcel would lose access to $800 million in credit; (iii) that the Company lacked the necessary internal controls to adequately monitor the trading of its power; and (iv) that as a result, the value of the Company's revenues and financial results were materially overstated at all relevant times.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Glancy & Binkow LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.
If you are a member of the Class described above, you may move the Court, not later than September 30, 2002, to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy & Binkow LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9161 or Toll Free at (888) 773-9224 or by e-mail to info@glancylaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca