NEW YORK, August 21, 2003 (PRIMEZONE) -- The law firm of Seeger Weiss LLP announces that a class action lawsuit was filed yesterday in the United States District Court for the Northern District of Ohio on behalf of all persons who purchased the publicly traded securities of FirstEnergy Corp. ("FirstEnergy" or the "Company") (NYSE:FE) between April 24, 2002 and August 5, 2003, inclusive, (the "Class Period"), and who were damaged thereby. A copy of the complaint filed in this action, numbered 5:03CV1766, is available from the Court or by contacting counsel below.
FirstEnergy is an electrical power company based in Ohio. The complaint alleges that defendants FirstEnergy Corp., H. Peter Burg, Anthony J. Alexander, Richard H. Marsh and Harvey L. Wagner, 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 April 24, 2002 and August 5, 2003. The Complaint alleges that during the Class Period, FirstEnergy issued quarterly press releases and filed financial reports with the SEC which purported to accurately reflect the Company's operating results and financial condition. Unbeknownst to class members, according to the complaint, the financial information contained in the Company's quarterly news releases and reports was artificially inflated through accounting improprieties. Specifically, the complaint alleges that during the Class Period the Company improperly accounted for certain of its leased generation plants by assigning such assets inflated values and improperly accounted for costs incurred in connection with the deregulation of certain of its businesses by employing an inappropriately long amortization schedule, thereby artificially inflating its reported earnings by material amounts. The complaint alleges that these accounting irregularities had the effect of materially inflating the Company's reported assets and income, thereby deceiving investors as to the Company's true results and financial condition.
On August 5, 2003, the Company issued a press release and posted a letter on its website announcing that it would be restating its previously reported financial results for all of 2002 and the first quarter of 2003 materially downward, reportedly "to reflect implementation of changed accounting treatments regarding the recovery of transition assets in Ohio and recognition of above-market values of certain leased generation facilities." In reaction to this announcement, the price of FirstEnergy common stock dropped materially, falling from $34.24 per share on August 4, 2003, to close at $31.33 per share on August 5, a one-day loss of 8.5% on unusually high trading volume of 5.4 million shares, which is more than four times the stock's average daily trading volume of 1.2 million shares.
If you bought the securities of FirstEnergy between April 24, 2002 and August 5, 2003 and sustained damages, you may, no later than October 10, 2003, request that the Court appoint you as lead plaintiff. In order to serve as lead plaintiff, however, you must meet certain legal requirements, which you can learn by calling counsel below.
Plaintiff seeks to recover damages on behalf of all Class members and is represented by the law firm of Seeger Weiss LLP. Seeger Weiss LLP maintains offices in New York City and New Jersey and is active in major complex commercial and securities litigations pending in federal and state courts throughout the United States.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to this matter, please contact plaintiff's counsel listed below.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca