BALA CYNWYD, Pa., June 7, 2002 (PRIMEZONE) -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
A securities class action lawsuit pending in the U.S. District Court for the Southern District of Texas, Houston Division (H-02-1810) claims that Reliant Resources, Inc. ("Reliant Resources" or the "Company") (NYSE:RRI) misled shareholders about its business and financial condition.
Plaintiff seeks damages for violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (and/or the Securities Act of 1933) on behalf of all investors who bought Reliant Resources, Inc. securities between May 14, 1999 and May 10, 2002 (the "Class Period").
Schiffrin & Barroway, LLP has prosecuted shareholder class actions for over fourteen years and has recovered more than $1 billion for investors. If you are a shareholder of Reliant Resources, Inc. and want to learn more about this lawsuit and about becoming a lead plaintiff, you may visit our website at http://www.sbclasslaw.com/cgi/signup.cgi.
The complaint alleges that the Texas-based Reliant Resources, Inc. 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, the last day of the Class Period, 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 purchased Reliant Resources, Inc. securities between May 14, 1999 and May 10, 2002, you may be a member of the class and have until July 15, 2002 to move the court to become a lead plaintiff. In order to serve as lead plaintiff, however, you must meet certain legal requirements. To be a member of the class, however, you do not need to take any action at this time. Should you decide to seek appointment as a lead plaintiff, you may retain Schiffrin & Barroway, or retain counsel of your choice.
To learn more about your rights and interests in this case and your ability to potentially recoup your losses, please contact Schiffrin & Barroway (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) directly at 888-299-7706 (toll free) or 610-822-2221, fax number 610-822-0002, e-mail at info@sbclasslaw.com or visit our website at www.sbclasslaw.com.
More information on this and other class actions can be found on the Class Action Newsline at http://www.primezone.com/ca