NEW YORK, June 5, 2002 (PRIMEZONE) -- According to Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com), which has filed a class action lawsuit against Dynegy, Inc. ("Dynegy" or the "Company") (NYSE:DYN) and four of the Company's senior officers on behalf of investors charging them with issuing materially false and misleading financial statements concerning, among other things, the Company's cash flow from operations, shareholders who purchased the common stock of Dynegy during the period from April 1, 2001 and April 24, 2002, inclusive (the "Class Period") have until Tuesday June 25, 2002 to seek appointment by the Court as one of the lead plaintiffs in this action.
The Complaint charges that defendants entered into a series of secret financial transactions with shell corporations, referred to as "Project Alpha," which were actually disguised loan transactions, and which were used to artificially inflate Dynegy's reported cash flow operations by $300 million for the year 2001. Defendants' misuse of these transactions to inflate its reported cash flow from operations was a serious violation of Generally Accepted Accounting Principles ("GAAP").
On April 25, 2002, prior to the market's opening, Dynegy shocked the investing community by announcing that after consultation with the staff of the Securities and Exchange Commission ("SEC"), the Company would file an amended Form 10-K for the year ended December 31, 2001, reducing operating cash flow from $811 million to $511 million, a decrease of approximately 37%. These disclosures caused the Company's stock to plummet nearly 30% by the end of trading on April 25, 2002.
If you purchased the common stock of Dynegy during the Class Period, you have until Tuesday June 25, 2002 to ask the Court to appoint you as one of the lead plaintiffs for the Class. In order to serve as lead plaintiff, you must meet certain legal requirements. If you wish to review a copy of the Complaint, to discuss this action or have any questions, please contact Andrew G. Tolan, Esq. of the Pomerantz firm at 888-476-6529 (or (888) 4-POMLAW), toll free, or at agtolan@pomlaw.com by e-mail. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.