PHILADELPHIA, May 16, 2002 (PRIMEZONE) -- Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Southern District of Texas, Houston Division on behalf of all purchasers of the common stock of Reliant Resources, Inc. ("Reliant Resources" or the "Company") (NYSE:RRI) between May 1, 2001 and May 10, 2002, inclusive (the "Class Period").
The complaint charges Reliant Resources, Inc. and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. Specifically, the complaint alleges that the defendants issued statements regarding Reliant Resources' quarterly and annual financial performance and filed reports confirming such performance with the United States Securities and Exchange Commission ("SEC"). The complaint alleges that these statements were materially false and misleading because, among other things, (i) the Company's stated and represented revenues in 1999 and 2000 were materially overstated because 10% of such revenues represented purchases and sales with the same counter-party at the same price, or so-called "round trip trades;" and (ii) the Company improperly accounted for certain transactions in its conventional accrual accounts as cash flow hedges.
On May 10, 2002, Reliant Resources announced that it was canceling a $500 million private placement debt offering that had been priced on May 9, 2002, due in part, to having engaged in "round trip" trades. Following this announcement, Reliant Resources common stock fell from a high of $15.10 on May 9, 2002 to a low of $11.10 on May 10, 2002, or a single-day decline of more than 25% on high trading volume and a decline of more than 55% from the Class Period high.
If you bought the securities of Reliant Resources between May 1, 2001 and May 10, 2002, you may, no later than July 15, 2002, request that the Court appoint you as lead plaintiff. A Lead Plaintiff is a representative, chosen by the Court, that acts on behalf of other class members in directing the litigation. The Private Securities Litigation Reform Act of 1995 directs Courts to assume that the class member(s) with the "largest financial interest" in the outcome of the case will best serve the class in this capacity. Courts have discretion in determining which class member(s) have the "largest financial interest," and have appointed Lead Plaintiffs with substantial losses in both absolute terms and as a percentage of their net worth.
If you have sustained substantial losses in Reliant Resources securities during the Class Period, please contact Spector, Roseman & Kodroff, P.C. at classaction@srk-law.com for a more thorough explanation of the Lead Plaintiff selection process. If you have relatively small losses, your ability to participate in any recovery will be protected by the Lead Plaintiff(s), and you need take no affirmative steps at this time.
If you wish to join this action, please visit http://www.srk-law.com/recentsecuritiesfilings.asp. To discuss this action or if you have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel Robert M. Roseman toll-free at 888-844-5862 or via E-mail at classaction@srk-law.com. For more detailed information about the firm please visit its website at http://www.srk-law.com.
Spector, Roseman & Kodroff, P.C., located in Philadelphia, Pennsylvania and San Diego, California, concentrates its practice in complex litigation including actions dealing with securities laws, antitrust, contract and commercial claims. The firm is active in major litigation pending in federal and state courts throughout the United States. The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm as lead counsel in numerous major class actions involving violations of the federal securities laws and the federal antitrust laws, and consumer fraud . As a result of the efforts of the firm, and its members, hundreds of millions of dollars have been recovered on behalf of thousands of defrauded shareholders and companies.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca