NEW YORK, April 9, 2002 (PRIMEZONE) -- The law firm of Abbey Gardy, LLP has filed a class action against NewPower Holdings, Inc. ("NewPower or the "company") (NYSE:NPW) in the United States District Court for the Southern District of New York, on behalf of all persons or entities who purchased NewPower common stock during the period from October 5, 2000 through December 5, 2001, inclusive.
The complaint charges NewPower and certain of its officers and directors with issuing false and misleading statements concerning, among other things, the inadequacy of risk management systems put in place in conjunction with NewPower affiliate, Enron Energy Services, Inc. ("EES"), and the true nature and purpose of certain related party transactions, including transactions pursuant to which Enron attempted to hedge its investment in NewPower through use of a partnership known as "Raptor III", which was conceived and designed by Enron CFO Andrew Fastow. The complaint also alleges that NewPower Holdings and certain of its officers and directors misrepresented or failed to disclose: (i) that the Company had not adopted effective and appropriate hedging strategies against volatility of commodity prices; (ii) that the Company was on course to achieve its financial goals and had sufficient liquidity to do so; and (iii) that certain forward contracts with EES posed little risk of loss when in truth and in fact they were driving the Company toward insolvency, and were largely structured to protect and enrich Enron, NewPower's controlling shareholder.
Plaintiff seeks to recover damages on behalf of all those who purchased or otherwise acquired NewPower securities during the Class Period. If you purchased or otherwise acquired NewPower securities during the Class Period, and either lost money on the transaction or still hold the securities, you may wish to join in the action to serve as lead plaintiff. If you purchased NewPower securities during the Class Period, you may, no later than April 29, 2002, request that the Court appoint you as lead plaintiff.
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 the class member's claim is typical of the claims of other class members, and that the class member 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, however, affected by the decision whether or not to serve as a lead plaintiff.
Abbey Gardy, LLP has been retained as one of the law firms to represent the Class. The attorneys at Abbey Gardy, LLP have extensive experience in securities class action cases, and have played lead roles in major cases resulting in the recovery of hundreds of millions of dollars to investors. If you would like to discuss this action or if you have any questions concerning this Notice or your rights as a potential class member or lead plaintiff, you may contact Nancy Kaboolian, Esq. or Jennifer Haas of Abbey Gardy, LLP at (800) 889-3701 or email JHaas@abbeygardy.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca