CHICAGO, Aug. 26, 2002 (PRIMEZONE) -- Nicor Inc. (NYSE:GAS) and two top executives are subjects of a class action lawsuit claiming they misled investors, Berman DeValerio Pease Tabacco Burt & Pucillo said.
The complaint was filed August 6 in U.S. District Court for the Northern District of Illinois. It seeks damages for violations of federal securities laws on behalf of all investors who bought Nicor common stock from April 18, 2000 through July 18, 2002 (the Class Period).
Berman DeValerio has represented investors in class actions for 20 years. To review the complaint and learn more about becoming a lead plaintiff, please visit the firm's website at www.bermanesq.com.
The lawsuit claims that Nicor, a holding company for the Northern Illinois Gas Company doing business as Nicor Gas Company, overcharged customers by manipulating its performance-based rate plan (PBR). The PBR plan is designed to give the utility competitive incentives to purchase cheaper natural gas on behalf of ratepayers.
According to the complaint, a June 13, 2002 news story in Crain's Chicago Business reported that the Illinois Commerce Commission and state law enforcement officials were investigating allegations that Nicor had boosted profits and overcharged its customers by manipulating the PBR. The news story said regulators began looking into the matter after the Citizen's Utility Board provided it with an in-depth memorandum believed to be written by a Nicor whistle-blower. The memo alleges that Nicor shortchanged ratepayers by $133 million over the last two years.
After the close of trading on July 18, 2002, Nicor announced in a news release that its preliminary results for the second quarter ended June 30, 2002 were well below the company's previous projections. The news release announced a $2.9 million second- quarter charge to reverse PBR-associated revenue recorded in the first quarter of 2002. The company also announced that a restatement of prior period earnings may be required with respect to the PBR program. Finally, Nicor also revealed accounting irregularities at Nicor Energy L.L.C., a joint venture with Dynegy, Inc., which resulted in a $10.6 million charge to earnings for the six months ended June 30, 2002.
These disclosures caused Nicor's stock to plummet to a closing price of $22.75 per share on July 19, 2002, down $26.25 per share, or 54%, from its Class Period high of $49 reached on April 22, 2002. If you purchased Nicor Inc. common stock during the period April 18, 2000 through July 18, 2002, you may wish to contact the following attorney at Berman DeValerio Pease Tabacco Burt & Pucillo to discuss your rights and interests.
Julie A. Richmond, Esq. Michael G. Lange, Esq. One Liberty Square Boston, MA 02109 (800) 516-9926 law@bermanesq.com
You may also visit the firm's website at www.bermanesq.com.
If you wish to apply to be lead plaintiff in this action, a motion must be filed on your behalf with the court no later than September 20, 2002. You may contact the attorneys at Berman DeValerio to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action. You may also retain counsel of your choice. To be a member of the class, however, you need not take any action at this time.
Berman DeValerio Pease Tabacco Burt & Pucillo prosecutes class actions nationwide on behalf of institutions and individuals, chiefly victims of securities fraud, antitrust law violations and consumer fraud. The firm consists of 34 attorneys in Boston, San Francisco and West Palm Beach, Florida.
More information on this and other class actions can be found on the Class Action Newsline at http://www.primezone.com/ca