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Case ID: 5194 | Stocks | 09/30/2008
A complaint was filed on September 24, 2008.
According to a press release dated September 23, 2008, a class action has been commenced on behalf of purchasers of Constellation Energy Group, Inc. publicly traded securities during the period between January 30, 2008 and September 16, 2008 (the "Class Period"), including the Series A Junior Subordinated Debentures (the "Preferred Securities "), pursuant and/or traceable to the Company's Registration Statement and Prospectus (collectively, the "Registration Statement") issued in connection with the Company's June 27, 2008 Preferred Securities offering. The complaint charges Constellation and certain of its officers and directors and its underwriters with violations of the Securities Exchange Act of 1934 and the Securities Act of 1933. Constellation is an energy company that conducts its business through various subsidiaries. The complaint alleges that due to defendants' positive, but false, statements, Constellation's stock closed as high as $88.25 per share on June 9, 2008. On June 27, 2008, defendants consummated the sale of Constellation's Preferred Securities pursuant to the false and misleading Registration Statement, selling 18 million shares at $25.00 per share for proceeds of approximately $435.8 million. In July 2008, the Company reported favorable financial results and reaffirmed EPS guidance of $5.25-$5.75 per share for 2008. In August 2008, analysts questioned Constellation's accounting and the implications of a credit downgrade. Then, on September 15, 2008, investors and the market became aware of Constellation's exposure to Lehman Brothers Holdings Inc.'s ("Lehman") bankruptcy, which affected the Company's ability to engage in energy-related trades. With this news, Constellation's shares plunged to $47.99, a 50% drop from the Company's Class Period high of $97.34 per share. According to the complaint, defendants were aware of the following material undisclosed information which contradicted their public statements, including in the Registration Statement/Prospectus: (a) defendants were inflating Constellation's results through manipulations relating to the characterization of depreciation expense which inflated the Company's reported cash flows; (b) the Company's financial results were inflated by overly optimistic assumptions which were reflected in mark-to-market accounting; (c) the Company's exposure to credit problems of trading partners was much greater than represented - in fact, one of Constellation's key trading partners, Lehman, was having severe financial problems; and (d) the Company was not on track to report 2008 EPS of $5.25+ per share.
Register your Constellation Energy Group ComplaintIf you or someone you know has been affected by this case, you may qualify for a money settlement as the result of your financial/economic or other damages that may be awarded either prior to a lawsuit or after the initiation of a lawsuit either currently in progress or filed just for you, possibly a class action lawsuit. Please simply register your complaint by clicking here for Constellation Energy Group, or click the red "submit" button on this page, and a lawyer will review your Constellation Energy Group complaint. By submitting your complaint, you are asking lawyers to contact you. You are under no obligation to accept their services and you are free to choose which lawyer you want to work with. Lawyers are usually paid out of the proceeds of the settlement or verdict rendered - the lawyers work on "contingency" by fronting the costs of your lawsuit based on their belief that they will recover a settlement for you. At Lawcash.com, it is our goal to keep you informed about important legal cases, class actions and settlements. Our lawyers offer free legal evaluations in tort cases, class actions, personal injury, and other lawsuits because we are dedicated to helping you resolve your legal complaints. Other Stocks Cases of Interest A class action has been filed against Brocade Communication Systems, Inc. (NasdaqNM:BRCD), certain of its officers and directors by stockholders who purchased the company's common stock between February 21, 2001 and May 15, 2005. The action claims 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. On April 30, 2008, a notice of motion to appoint lead plaintiffs and lead counsels was filed by certain groups and individuals. As a result, an order granting motion to appoint lead plaintiffs and counsels was entered on April 30, 2008.
According to a law firm press release, on May 12, 2008 a class action lawsuit was against MGIC Investment Corporation. A class action has been filed against Molson Coors Brewing Company , certain of its officers and directors by stockholders who purchased the company's common stock between July 22, 2004 and April 27, 2005. The action claims 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. A class action has been filed against Tripos, Inc. (Nasdaq: TRPS) and certain of its officers and directors by stockholders who purchased the company's common stock between January 9 and July 1, 2002. A class action has been filed against entertainment software company Midway Games, Inc. (NYSE: MWY) and certain of its officers and directors by stockholders who purchased the company's common stock between December 11, 2001, and July 30, 2003. |
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