Wechsler Harwood Halebian & Feffer LLP Announces Class Action Suit Against Exelon Corporation (NYSE: EXC)
PRNewswire
NEW YORK
Jun 15, 2002
The law firm of Wechsler Harwood Halebian & Feffer LLP ("Wechsler Harwood") announces that a class action has been commenced on behalf of an investor in the United States District Court for the Northern District of Illinois on behalf of purchasers of Exelon Corporation ("Exelon" or the "Company") (NYSE: EXC) who publicly traded securities between April 24, 2001 and September 27, 2001, inclusive (the "Class Period").
The complaint alleges that the Illinois-based Exelon Corporation repeatedly issued statements concerning the strength of its operations and repeatedly assured the market that it would meet or beat its $4.50 per share projected earnings figure for 2001. The complaint alleges that these statements were materially false and misleading because they failed to disclose, among other things: (a) that the investments in telecommunications companies held by Exelon's Enterprises segment were dropping in value at a rapid pace and, therefore, the Enterprises segment could not and would not meaningfully contribute to the Company's financial results, and that in fact, the Company was carrying tens of millions of dollars of impaired investments on its financial statements; and (b) that InfraSource, Exelon's infrastructure subsidiary, was experiencing declining demand for its products as its primary customers, telecommunications companies, were facing severe industry-wide problems, such as mounting debt and over-capacity, and were significantly cutting back on their capital expenditures. On September 27, 2001, Exelon issued a press release announcing that it would not meet its earnings commitment of $4.50 for 2001, blaming the economy, poor weather and write-downs for failed investments made by the Enterprises unit. In reaction to the announcement, Exelon's common stock price plunged by 22%, falling to a low of $38.85 per share on September 27, 2001, after closing at $50.45 the previous day, on extremely heavy trading volume.
Plaintiff seeks to recover damages on behalf of all class members.
If you are a member of the Class described above, and if you meet certain other legal requirements, you may, no later than July 8, 2002, move the Court to serve as a 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 plaintiff."
The requirements for serving as a lead plaintiff are set forth in the Private Securities Litigation Reform Act of 1995 (15 U.S.C. Section 78u-4). You may move the Court to serve as lead plaintiff through counsel of their choice (and need not necessarily do so through plaintiff's counsel). (15 U.S.C. 78u-4(a)(3)). At this stage, providing information or communicating with counsel is unnecessary to participate in any recovery resulting from this litigation.
Wechsler Harwood has taken a leading role in many important actions on behalf of defrauded shareholders. The Wechsler Harwood website (http://www.whhf.com/) has more information about the firm. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following:
Wechsler Harwood Halebian & Feffer LLP 488 Madison Avenue, 8th Floor New York, New York 10022 Toll Free Telephone: (877) 935-7400 Patricia Guiteau, Wechsler Harwood Shareholder Relations Department: pguiteau@whhf.com
SOURCE: Wechsler Harwood Halebian & Feffer LLP
CONTACT: Patricia Guiteau of Wechsler Harwood Halebian & Feffer LLP,
+1-877-935-7400 or pguiteau@whhf.com
Web site: http://www.whhf.com/