Independent Energy Holdings PLC, an electric generating andelectric marketing company, has found itself the target of afederal class action lawsuit for stock fraud brought by thecompany’s shareholders, according to law firm Berman DeValerio& Pease LLP.
The lawsuit filed in the District Court for the southerndistrict of New York claims the defendants issued “false andmisleading information” pertaining to the UK-based company’sfinancial and operating conditions.
The suit seeks damages for violations of federal securities lawson behalf of anyone who purchased American depository shares ofIndependent Energy between Feb. 12, 2000 and Sept. 8, 2000. Duringthis class period, the complaint alleges that the defendantmisrepresented the extent of its problems with respect to billingits sub-100 kW electricity customers.
The suit claims that Independent Energy continually assuredinvestors that its billing problems were only bill timing problems,but at the end of the class period, the company revealed there werealso accounting and collection errors. On Aug. 11 of this year,Independent Energy announced that due to these problems, itsfinancial results for the year ending June 30, 2000 would be belowanalysts’ estimates. As a result, the company said it would delayreporting its results, and on Sept. 8, the London Stock Exchangeand Nasdaq suspended its trading.
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