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Case Status:    SETTLED
On or around 02/22/2012 (Date of order of final judgment)

Filing Date: April 26, 2002

According to a press release dated July 13, 2005, on July 7, 2005, the U.S. District Court for the Southern District of Texas approved a deal reached in April requiring Dynegy to pay $468 million to settle a securities fraud class action suit surrounding the company's so-called "Project Alpha" transactions.

In a press release dated April 15, 2005, the University of California, lead plaintiff in a securities fraud class-action suit against Dynegy, said Friday it reached a $468 million settlement with the power generator and some of its former executives. The University claimed Dynegy (DYN) violated securities law by misleading investors in the way it accounted for Project Alpha, a $300 million financing scheme based on a series of natural gas trades that overstated the power generator's cash flow for most of 2001.

As part of the settlement, Dynegy agreed to appoint two plaintiff-nominated directors to help monitor corporate governance reforms put in place at the company. Dynegy said its director and officer insurance policies would cover $150 million of the settlement and another $68 million would come from a stock issue. Dynegy will also make cash payments of $250 million in two series: $175 million in the second quarter and another $75 million following federal court approval. Additionally, Dynegy agreed to pay $5 million in attorneys' fees and expenses related to derivative litigation.

The complaint charges Dynegy and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The complaint alleges that Dynegy and its top officers inflated the price of the Company's stock in order to pursue an accelerated securities sale program. Defendants knew that concealing Dynegy's true vehicle, Project Alpha, for creating cash flow from operations and the true impact it would have on the Company provided the only way that they could foster the perception in the business community that Dynegy was not "Enron Corp.," i.e., the only way Dynegy could post the revenue and earnings per share growth claimed by defendants. Prior to the Class Period, the Individual Defendants realized that many of their complicated deals to generate reported net income did not generate cash flows. The defendants knew that investors would eventually discover this discrepancy and the Company's stock price would collapse. To prevent this, Dynegy classified what was essentially a loan from CitiGroup Inc. as an operating activity rather than as a financing activity as required by Generally Accepted Accounting Principles. The defendants' wrongful course of business (i) artificially inflated the price of Dynegy's stock during the Class Period; (ii) deceived the investing public, including plaintiff and other Class members, into acquiring Dynegy's securities at artificially inflated prices; (iii) allowed the Individual Defendants to extract millions of dollars in bonuses for creating the appearance of the Company's phenomenal cash flow from operations growth; and (iv) allowed Dynegy to sell nearly half a billion dollars of its own securities to the unsuspecting public.

COMPANY INFORMATION:

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

SECURITIES INFORMATION:

Ticker Symbol: DYN
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. Texas
DOCKET #: 02-CV-01571
JUDGE: Hon. Sim Lake
DATE FILED: 04/26/2002
CLASS PERIOD START: 04/17/2001
CLASS PERIOD END: 04/24/2002
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. Alfred G. Yates, Jr. Law Firm
    429 Forbes Avenue, 519 Allegheny Building, Alfred G. Yates, Jr. Law Firm, PA 15219
    412.391.5164 ·
  3. Berger & Montague PC
    1622 Locust Street, Berger & Montague PC, PA 19103
    800.424.6690 215.875.4604 · investorprotect@bm.net
  4. 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
  5. 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 ·
  6. Federman & Sherwood (Oklahoma City)
    120 North Robinson, Suite 2720, Federman & Sherwood (Oklahoma City), OK 73102
    405-235-1560 · wfederman@aol.com
  7. Kaplan Fox & Kilsheimer, LLP (former New York, NY)
    805 Third Avenue, 22nd Floor, Kaplan Fox & Kilsheimer, LLP (former New York, NY), NY 10022
    212.687.1980 212.687.7714 · info@kaplanfox.com
  8. 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
  9. Law Offices of Marc S. Henzel (Lawrence)
    335 Central Avenue, Law Offices of Marc S. Henzel (Lawrence), NY 11559
    516.374.0707 516.295.3473 · securitiesfraud@comcast.net
  10. Leo W. Desmond
    2161 Palm Beach Lakes Boulevard, Suite 204, Leo W. Desmond, FL 33409
    561.712.8000 561.712.8000 · stocklaw@bellsouth.net
  11. Mark McNair
    1919 Pennsylvania Avenue, NW, Suite 800, Mark McNair , DC 20006
    703.273.3070 · wmmcnair@justice4investors.com
  12. 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 ·
  13. Pomerantz LLP (New York)
    600 Third Avenue, Pomerantz LLP (New York), NY 10016
    212.661.1100 212.661.8665 · info@pomerantzlaw.com/
  14. Rabin & Peckel LLP
    275 Madison Avenue, 34th Floor, Rabin & Peckel LLP, NY 10016
    212.682.1818 212.682.1892 · email@rabinlaw.com
  15. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
  16. Stull, Stull & Brody (New York)
    6 East 45th Street, Stull, Stull & Brody (New York), NY 10017
    310.209.2468 310.209.2087 · SSBNY@aol.com
  17. The Emerson Firm
    2228 Cottondale Avenue, Suite 100, The Emerson Firm, AR 72202
    800.663.9817 501.907.2556 · epllp@emersonpoynter.com
  18. Wechsler Harwood LLP
    488 Madison Avenue 8th Floor, Wechsler Harwood LLP, NY 10022
    212.935.7400 · info@whhf.com
  19. 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
  20. 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. Texas
DOCKET #: 02-CV-01571
JUDGE: Hon. Sim Lake
DATE FILED: 01/30/2004
CLASS PERIOD START: 04/17/2001
CLASS PERIOD END: 04/24/2002
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Claxton & Hill
    3131 McKinney Ave., Suite 700 LB 103, Claxton & Hill, TX 75204-2471
    214.969.9099 ·
  2. Lerach Coughlin Stoia Geller Rudman & Robbins LLP (San Diego)
    401 B Street, Suite 1700, Lerach Coughlin Stoia Geller Rudman & Robbins LLP (San Diego), CA 92101
    206.749.5544 206.749.9978 · info@lerachlaw.com
  3. Milberg Weiss Bershad Hynes & Lerach LLP (Los Angeles, CA)
    355 S Grand Ave - Ste 4170, Milberg Weiss Bershad Hynes & Lerach LLP (Los Angeles, CA), CA 90071-3172
    213.617.9007 ·
  4. Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA)
    600 West Broadway, 1800 One America Plaza, Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA), CA 92101
    800.449.4900 · support@milberg.com
  5. Pomerantz LLP (New York)
    600 Third Avenue, Pomerantz LLP (New York), NY 10016
    212.661.1100 212.661.8665 · info@pomerantzlaw.com/
  6. Susman, Godfrey LLP (Dallas)
    4100 Bank of America, 901 Main Street, Susman, Godfrey LLP (Dallas), TX 75202
    214.754.1908 · mevans@susangodfrey.com
  7. The Baskin Law Firm
    919 Congress Avenue, Suite 1000, The Baskin Law Firm, TX 78701
    512.381.6300 512.322.9280 ·
  8. The Emerson Firm
    2228 Cottondale Avenue, Suite 100, The Emerson Firm, AR 72202
    800.663.9817 501.907.2556 · epllp@emersonpoynter.com
No Document Title Filing Date
No Document Title Filing Date