According to the docket, on August 1, 2002, the Court entered the Order by U.S. District Judge Ruben Castillo consolidating the actions, appointing Lead Plaintiff and approving selection of Lead and Liaison Counsel. On October 1, 2002, the plaintiff filed a Consolidated Amended Class Action Complaint, and, on December 6, 2002, the defendants responded by filing a motion to dismiss the Consolidated Amended Class Action Complaint. On June 13, 2003, the Court entered the Order granting the motion to dismiss with prejudice. Further, Judgment was entered in favor of the defendants and against the plaintiffs. The case is closed.
The original complaint charges that defendants violated 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 April 24, 2001 and September 27, 2001. The complaint alleges that
Exelon repeatedly issued statements concerning the strength of its operations
and repeatedly assured the market that it would meet or beat its $4.50 per
share earnings figure for 2001. The complaint alleges that these statements
were materially false and misleading because they failed to disclose, among
other things: (a) that the investments in telecommunications companies held by
Exelon's Enterprises segment were plummeting in value at a rapid pace.
Accordingly, Enterprises could not and would not meaningfully contribute to the
Company's results and, in fact, the Company was carrying tens of millions of
dollars of impaired investments on its financial statements; and (b) that
InfraSource, Exelon's infrastructure subsidiary, was experiencing declining
demand for its products as its primary customers, telecommunications companies,
were facing severe industry-wide problems, such as mounting debt and over-
capacity, and were significantly cutting back on their capital expenditures. On
September 27, 2001, Exelon issued a press release announcing that it would not
meet its earnings commitment of $4.50 for 2001, blaming the economy, poor
weather and write-downs for failed investments made by the Enterprises unit. In
reaction to the announcement, Exelon's common stock price plunged by 22%,
falling to a low of $38.85 per share on September 27, 2001, after closing at
$50.45 the previous day, on extremely heavy trading volume.