Several class actions have been filed against energy holding company TECO Energy, Inc. (NYSE:TE), and certain of its officers and directors by stockholders who purchased the company's common stock between October 30, 2001, and February 4, 2003. The actions claim that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock.

The actions allege that, during the applicable period, the defendants concealed problems with several independent power plant construction ventures for which TECO would ultimately be fully responsible. Among these were the company’s full exposure in the demise of Enron Corporation and the vulnerability of its own large cash dividend. The company allegedly covered these weaknesses, causing TECO shares to trade at artificially inflated levels-- and permitting the defendants to sell over $4.2 million of their own personally-held stock for over $792 million.

In late 2002 and early 2003, TECO’s complex financing scheme began to unravel when several large projects and company liabilities were accounted for, so that hundreds of millions of dollars of off-balance sheet debt suddenly showed up on the company’s balance sheet-- at which point TECO took over one billion dollars in impairment charges. Its common stock fell from over $28 per share on April 23, 2002, to less than $13 per share on February 4, 2003.

If you purchased securities issued by TECO Energy during the applicable period, you may request appointment by the court as a lead plaintiff if you do so by October 24, 2004. 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 your claim is typical of the claims of other class members, and that you will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiffs. Your ability to share in any recovery is not affected by the decision whether or not to serve as a lead plaintiff. You may retain any counsel of your choice to serve you in this action, or you may choose to do nothing, and remain in the class as a silent member.