BALA CYNWYD, Pa., March 8, 2002 (PRIMEZONE) -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Southern District of New York on behalf of all purchasers of the common stock of NewPower Holdings ("NewPower" or "the Company") (NYSE:NPW) during the period between October 5, 2000 and December 5, 2001, inclusive (the "Class Period").
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@sbclasslaw.com.
The complaint charges NewPower Holdings and certain of its officers and directors with issuing false and misleading statement concerning its business and financial condition. Specifically, the complaint alleges that the Registration Statement and Prospectus for NewPower's public offering on October 5, 2000 was false and misleading in several ways, including misrepresentations and omissions concerning the adequacy of risk management systems put in place in conjunction with NewPower affiliate, Enron Energy Services, Inc. ("EES"), and the true nature and purpose of certain related party transactions, including transactions pursuant to which Enron attempted to hedge its investment in NewPower through use of a partnership known as "Raptor III", which was conceived and designed by Enron CFO Andrew Fastow. Claims regarding these misrepresentations and omissions have been asserted under Section 11 of the Securities Act against the underwriters of the October 5, 2000 initial public offering and against those persons who were directors (or about to become directors) of NewPower at the time of that offering, including NewPower's top executives, CEO H. Eugene Lockhart, Chairman Lou L. Pai and CFO William I. Jacobs.
The complaint alleges in this regard that NewPower Holdings and certain of its officers and directors misrepresented or failed to disclose: (I) that the Company had not adopted effective and appropriate hedging strategies against volatility of commodity prices; (ii) that the Company was on course to achieve its financial goals and had sufficient liquidity to do so; and (iii) that certain forward contracts with EES posed little risk of loss when in truth and in fact they were driving the Company toward insolvency, and were largely structured to protect and enrich Enron, NewPower's controlling shareholder.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, LLP, which has significant experience and expertise prosecuting class actions on behalf of investors and shareholders. For more information on Schiffrin & Barroway, or to sign-up to participate in this action online, please visit www.sbclasslaw.com.
If you are a member of the class described above, you may, not later than April 29, 2002, move the Court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements.
More information about this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca