A California green power marketer has apparently fallen out offavor with at least some of its investors as evidenced by a classaction filed in the U.S. District Court in California on behalf ofKeystone Energy Services shareholders who acquired shares betweenNov. 14, 1997 and Feb. 3.

Keystone and certain of its officers and directors are chargedwith issuing false and misleading statements regarding operations,prospects and earnings, artificially inflating the price ofKeystone stock. Keystone is an electricity supplier playing inCalifornia’s deregulated marketplace and trades over the counterunder the symbol KESE.

Keystone spokeswoman Lillian Firestone said the company’s legaldepartment has not received papers related to the class action, soshe could not comment. “They went to the media before they didtheir filings.”

On May 6, Keystone announced it elected two new directors to itsboard and retained the California Competition Network (CCN), alobbying association, to help acquire markets in California. OnApril 28, the company said it entered the green energy market inCalifornia and applied to become a registered renewable providerwith the California Energy Commission under product names EarthChoice 100 and Earth Choice 50. “As Enron exits the residentialmarket in California, Keystone is moving ahead to capture theincreased opportunity,” the company said in a press release.”Keystone will target the residential arena with renewable ‘green’energy products, creating a substantially higher margin from salesin California, one of the most environmentally conscious states.”

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