WASHINGTON, Oct. 21 2002 (PRIMEZONE) -- The Law Office of Mark McNair announced a securities class action lawsuit has been filed against TXU Corp. (NYSE:TXU). The complaint is on behalf of, and seeks damages for shareholders who purchased the stock between April 25, 2002 and October 11, 2002.
The case is pending in the United States District Court for the Northern District of Texas against TXU and certain of its officers and directors.
The case charges that defendants violated federal securities laws by issuing a series of materially false and misleading statements to the market throughout the Class Period which statements had the effect of artificially inflating the market price of the Company's securities.
Specifically, TXU investors have been stunned by two revelations. First, on October 4, 2002, the Company shocked the market by disclosing it expected materially lower earnings than had been previously predicted. These revelations caused the Company's common stock to decline over 55% in the next four trading days. Second, on October 14, 2002, before the market opened, TXU announced that it was cutting its dividend 80% to $0.125 per share and was selling all of its European assets. The Company's stock price immediately collapsed to as low as $10.10 per share before closing at $12.94.
No class has yet been certified in the above action. Until a class is certified, you are not represented by counsel unless you retain one. If you are a member of the Class, you may move the court no later than December 14, 2002 to serve as lead plaintiff for the Class. In order to serve as lead plaintiff, you must meet certain legal requirements. To be a member of the class you need not take any action at this time, and you may retain counsel of your choice.
If you were a purchaser of TXU during the period indicated and want to discuss your legal rights, you may e-mail or call the Law Office of Mark McNair who will, without obligation or cost to you, attempt to answer your questions. You may contact the Law Office of Mark McNair at 1101 30th Street PN.W. Suite 500, Washington, D.C, 20007, by telephone at (877) 511.4717 or (202) 872.4717, via e-mail at mcnair@justice4investors.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.