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Case Status:    SETTLED
On or around 10/14/2009 (Other)

Filing Date: February 27, 2002

On November 20, 2004, the Court entered the Final Judgment and Order of Dismissal with Prejudice, signed by U.S. District Judge Charles L. Brieant. The settlement with the defendants, the Underwriter defendants, was approved and the case closed.

According to a law firm’s website, on September 13, 2004, the Court endorsed a Stipulation and Agreement of Settlement providing for a $15,000,000 settlement with the Underwriter Defendants and preliminarily approved the final settlement. The settlement is still subject to final judicial approval. A settlement fairness hearing will be held on November 30, 2004.

In a press release dated May 04, 2004, the Company announced that the United States District Court for the Southern District of New York (the "District Court") and the United States Bankruptcy Court for the Northern District of Georgia, Newnan Division (the "Bankruptcy Court") approved the settlement agreement with respect to claims against its former directors in consolidated actions that were pending in the District Court, No. 02 Civ. 1550 (CLB) (the "Securities Litigation"), and identical purported claims against the Company (the "Proofs of Claim") filed in the jointly-administered bankruptcy cases that were pending in the Bankruptcy Court entitled In re The NewPower Company, Case No. 02-10835, In re NewPower Holdings, Inc., Case No. 02-10836, and In re TNPC Holdings, Inc., Case No. 02-10837, respectively. The Bankruptcy Court approved the settlement agreement on March 9, 2004, and the District Court entered a judgment approving the settlement agreement on April 29, 2004. Pursuant to the settlement agreement, plaintiffs in the Securities Litigation and claimants in the Proofs of Claim agreed to resolve all their claims against the Company and its former directors in exchange for a payment of $26 million, of which $24.5 million will be paid by insurance providers and $1.5 million will be paid by the Company. Neither the Company nor any of the former directors named as defendants in the Securities Litigation have admitted any liability or wrongdoing.

Additional cases were filed on behalf of investors. On April 25, 2002, the various cases were consolidated. The consolidated caption and index number are In re NewPower Holdings Securities Litigation and 02-cv-1550 (CLB). On April 29, 2002, motions were made to appoint lead plaintiff and counsel. Lead plaintiff and counsel were appointed on June 7, 2002. Plaintiffs filed a consolidated class action complaint on July 31, 2002. Defendants filed motions to dismiss in December 2002. Plaintiffs filed their opposition on February 14, 2003. Defendants filed reply motions in March 2003. On April 17, 2003, the Court denied both pending motions to dismiss.

The original 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 also alleges claims against certain of these same defendants for violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of materially false and misleading statements to the market between October 5, 2000 and December 5, 2001. 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.

COMPANY INFORMATION:

Sector: Utilities
Industry: Electric Utilities
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: NPW
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: S.D. New York
DOCKET #: 02-CV-1550
JUDGE: Hon. Charles L. Breiant
DATE FILED: 02/27/2002
CLASS PERIOD START: 10/05/2000
CLASS PERIOD END: 12/05/2001
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Abbey Gardy, LLP (New York)
    212 East 39th Street, Abbey Gardy, LLP (New York), NY 10016
    212.889.3700 · info@abbeygardy.com
  2. Abraham & Paskowitz
    The Lincoln Building 60 East 42nd St., 47th Fl.,, Abraham & Paskowitz, NY 10165
    212.692.0555 212.557.6151 · info@ClassActionsOnline.com
  3. Bernstein Liebhard & Lifshitz, LLP (New York)
    10 E. 40th Street, 22nd Floor, Bernstein Liebhard & Lifshitz, LLP (New York), NY 10016
    800.217.1522 · info@bernlieb.com
  4. Cauley Geller Bowman Coates & Rudman LLP (Little Rock, AR)
    P.O. Box 25438, Cauley Geller Bowman Coates & Rudman LLP (Little Rock, AR), AR 72221-5438
    501.312.8500 501.312.8505 ·
  5. Law Offices of Charles J. Piven, P.A.
    World Trade Center-Baltimore,401 East Pratt Suite 2525, Law Offices of Charles J. Piven, P.A., MD 21202
    410.332.0030 · pivenlaw@erols.com
  6. Leo W. Desmond
    2161 Palm Beach Lakes Boulevard, Suite 204, Leo W. Desmond, FL 33409
    561.712.8000 561.712.8000 · stocklaw@bellsouth.net
  7. Pomerantz LLP (New York)
    600 Third Avenue, Pomerantz LLP (New York), NY 10016
    212.661.1100 212.661.8665 · info@pomerantzlaw.com/
  8. Rabin & Peckel LLP
    275 Madison Avenue, 34th Floor, Rabin & Peckel LLP, NY 10016
    212.682.1818 212.682.1892 · email@rabinlaw.com
  9. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
  10. The Emerson Firm
    2228 Cottondale Avenue, Suite 100, The Emerson Firm, AR 72202
    800.663.9817 501.907.2556 · epllp@emersonpoynter.com
  11. Wechsler Harwood LLP
    488 Madison Avenue 8th Floor, Wechsler Harwood LLP, NY 10022
    212.935.7400 · info@whhf.com
  12. Weiss & Yourman (New York, NY)
    The French Building, 551 Fifth Ave., Suite 1600, Weiss & Yourman (New York, NY), NY 10126
    212.682.3025 212.682.3010 · info@wyca.com
  13. Wolf Haldenstein Adler Freeman & Herz LLP (New York)
    270 Madison Avenue, Wolf Haldenstein Adler Freeman & Herz LLP (New York), NY 10016
    212.545.4600 212.686.0114 · newyork@whafh.com
  14. Wolf Popper, LLP
    845 Third Avenue, Wolf Popper, LLP, NY 10022-6689
    877.370.7703 212.486.2093 · IRRep@wolfpopper.com
No Document Title Filing Date
COURT: S.D. New York
DOCKET #: 02-CV-1550
JUDGE: Hon. Charles L. Breiant
DATE FILED: 07/31/2002
CLASS PERIOD START: 10/05/2000
CLASS PERIOD END: 12/05/2001
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Abraham & Paskowitz
    The Lincoln Building 60 East 42nd St., 47th Fl.,, Abraham & Paskowitz, NY 10165
    212.692.0555 212.557.6151 · info@ClassActionsOnline.com
  2. Cauley Geller Bowman & Coates (Boca Raton, FL)
    2255 Glades Road Suite 421A, Cauley Geller Bowman & Coates (Boca Raton, FL), FL 33431
    561.750.3000 ·
  3. Cauley Geller Bowman & Coates, LLP (Little Rock, AR)
    11311 Arcade Drive, Suite 200, Cauley Geller Bowman & Coates, LLP (Little Rock, AR), AR 72212
    ·
  4. Goldman Gruder & Wood
    200 Connecticut Avenue, Goldman Gruder & Wood, CT 06854
    212-907-0881 212-883-7081 ·
  5. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
No Document Title Filing Date
No Document Title Filing Date