NEW YORK, June 10, 2002 (PRIMEZONE) -- Wolf Popper LLP announced today that it has filed an amended class action complaint against Dynegy, Inc. ("Dynegy") (NYSE:DYN) to reflect Dynegy's recent admissions that it previously filed financial statements that were materially false and misleading and in violation of generally accepted accounting principles ("GAAP"). The amended complaint expands the class period to include all persons who purchased Dynegy common stock from April 17, 2001 through May 15, 2002, inclusive (the "Class Period").
The amended complaint alleges that defendants manipulated the market price of Dynegy common stock by artificially inflating its reported cash flow from operations by $300 million and improperly claiming $79 million in tax benefits through a scheme entitled "Project Alpha."
On April 25, 2002, Dynegy admitted that its cash flow statements were materially false and misleading and had been compiled of violation of GAAP and that it was required to restate its 2001 financial statements to reverse the improper recognition of $300 million in cash flow from operations.
Dynegy also acknowledged on May 15, 2002 that its income statement was materially false and misleading and in violation of GAAP and that it was required to restate its financial statements again and reverse $79 million in tax benefits and consequently reduce its 2001 net income by approximately 12%, or 23 cents a share, from $648 million, or $1.90 per share, to $569 million, or $1.67 per share. The United States Attorney's Office in Houston has subpoenaed documents from Dynegy in connection with Project Alpha.
During the Class Period, shares of Dynegy common stock traded as high as $57.95 per share. After Dynegy's admission of its fraudulent financial statements and need for restatements, Dynegy common stock fell to close at $7.65 per share on May 16, 2002.
Any member of the proposed class who desires to be appointed lead plaintiff in this action must file a motion with the Court no later than June 25, 2002. Class members must meet certain legal requirements to serve as a lead plaintiff. If you have questions or information regarding this action, or if you are interested in serving as a lead plaintiff in this actions, you may call or write:
Wolf Popper LLP, Robert C. Finkel, Esq. 845 Third Avenue, New York, NY 10022-6689 Tel.: 212.451.9620, Toll Free: 877.370.7703; Fax: 212.486.2093, Toll Free: 877.370.7704 Email: irrep@wolfpopper.com; Website: www.wolfpopper.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca