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Case Status:    SETTLED
On or around 12/28/2000 (Date of order of final judgment)

Filing Date: August 03, 1998

According to the closing Order and Final Judgment, dated December 28, 2000 from U.S. District Judge A Joe Fish of the Federal District Court for the Northern District of Texas, the case was settled by agreement in June 2000.

Originally on August 3, 1998, EEX, several of its current and/or former
officers and directors, Texas Utilities Company ("TUC") and TUC's Chief
Executive Officer were named in a class action lawsuit filed in the Northern
District of Texas that was designated as Gracy Fund L.P. v. EEX Corporation,
et al., ("Gracy Fund"). The Gracy Fund complaint alleged violations of the
Securities Act of 1933 ("33 Act") and the Securities Exchange Act of 1934 ("34
Act") against various defendants.

Additionally, on August 3, 1998, EEX, several of its current and/or former officers and directors, and two additional companies (ENSERCH Corporation and DeGolyer & MacNaughton) were named in a class action lawsuit filed in the Southern District of Texas that was designated as Stan C. Thorne v. EEX Corp.,
et al ("Thorne"). The Thorne complaint alleged violations of the 34 Act and
common law-based negligent misrepresentations and fraud claims.

On October 5, 1998, the Thorne defendants filed a motion to transfer the Thorne action to the Northern District of Texas. On November 20, 1998, the Thorne action was transferred to the Northern District of Texas and consolidated with the Gracy Fund action. On January 22, 1999, plaintiffs filed an amended class action complaint in the consolidated Gracy Fund action against EEX, several of its current and/or former officers and directors and another company, ENSERCH Corporation ("Consolidated Complaint").

The Consolidated Complaint alleges violations of Sections 11, 12(a)(2) and 15 of the 33 Act and violations of Sections 10(b), 14(a) and 20(a) of the 34 Act against various defendants. The Consolidated Complaint alleges the Sections 10(b), 15 and 20(a) claims on behalf of a class of plaintiffs who acquired EEX's stock pursuant to an October 1996 Registration Statement and Proxy/Prospectus ("EEX Subclass"). Plaintiffs allege that during the class period, defendants made materially false and misleading statements, and failed to disclose material facts, regarding the value and volume of EEX's proved reserves from its East Texas operations. According to plaintiffs, these purported misrepresentations artificially inflated the price of EEX's common stock throughout the class period, induced the EEX Subclass to approve the merger that spun EEX off from ENSERCH and induced the EEX Subclass to acquire stock pursuant to the Registration Statement and Proxy/Prospectus issued regarding this merger.

The Company filed a motion to dismiss the Consolidated Complaint on March 8, 1999. The case was later settled by an agreement in June 2000.

COMPANY INFORMATION:

Sector: Energy
Industry: Oil & Gas Operations
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: EEX
Company Market: New York SE
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: N.D. Texas
DOCKET #: 98-CV-1808
JUDGE: Hon. A. Joe Fish
DATE FILED: 08/03/1998
CLASS PERIOD START: 01/26/1996
CLASS PERIOD END: 08/04/1997
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Cohen, Milstein, Hausfeld & Toll, P.L.L.C. (New York, NY)
    825 Third Avenue - 30th Floor, Cohen, Milstein, Hausfeld & Toll, P.L.L.C. (New York, NY), NY 10022
    212.838.7797 212.838.7745 · lawinfo@cmht.com
  2. Milberg Weiss Bershad Hynes & Lerach LLP (New York, NY)
    One Pennsylvania Plaza, Milberg Weiss Bershad Hynes & Lerach LLP (New York, NY), NY 10119-1065
    212.594.5300 ·
No Document Title Filing Date
COURT: N.D. Texas
DOCKET #: 98-CV-1808
JUDGE: Hon. A. Joe Fish
DATE FILED: 01/22/1999
CLASS PERIOD START: 08/03/1995
CLASS PERIOD END: 08/05/1997
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Milberg Weiss Bershad Hynes & Lerach LLP (New York, NY)
    One Pennsylvania Plaza, Milberg Weiss Bershad Hynes & Lerach LLP (New York, NY), NY 10119-1065
    212.594.5300 ·
No Document Title Filing Date
No Document Title Filing Date