Case Page

 

Case Status:    SETTLED
On or around 02/22/2012 (Other)

Filing Date: May 15, 2002

According to the docket posted, on September 27, 2005, a Stipulation and Agreement of Settlement was filed. On October 18, 2005, the Court entered the Order signed by U.S. District Judge Ewing Werlein, Jr. preliminarily approving the settlement, and setting the settlement conference for January 5, 2006. On January 11, 2006, the Court entered the Order of Dismissal and Final Judgment. Further that day, the Court entered the Order approving an opt out of William H. Pineo.

In a press release dated July 29, 2005, Reliant Energy, Inc. announced that it has agreed to settle all shareholder class action lawsuits related to alleged violations of the securities laws governing the manner in which certain trading activities of the company were accounted for during the 1999 to 2001 time frame. The suits were consolidated in the U.S. District Court in Houston. The class actions include claims for damages on behalf of a class of purchasers of Reliant stock during the period of April 30, 2001 through and including May 14, 2002.

The settlement, which is subject to court approval, provides for a total settlement payment by Reliant of $68 million, of which $61.5 million is covered by Reliant's director and officer insurance policies. Reliant will make a cash payment of $6.5 million as part of the settlement and pay certain costs associated with the defense of the litigation. In addition, Deloitte & Touche LLP, another defendant in the litigation, has agreed to make a payment of $7 million, bringing the total value of the settlement to $75 million.

As reported by the Company’s FORM 10-K for the fiscal year ended December 31, 2004, the Company is a named defendant in 15 class action lawsuits filed on behalf of purchasers of the Company’s securities and the securities of CenterPoint. The lawsuits allege that the defendants violated federal securities laws by, among other things, making false and misleading statements about trading volumes and revenues. The lawsuits seek monetary damages on behalf of persons who purchased CenterPoint securities during specified class periods. In August 2002, the shareholder lawsuits were consolidated into one proceeding before the United States District Court, Southern District of Texas, Houston Division. In March 2003, the Company and the other defendants filed a motion to dismiss certain of the claims. In January 2004, the court dismissed with prejudice the federal and state securities fraud claims. With the dismissal of all fraud-related claims, the only remaining claims against the Company are claims under Section 11 and 15 of the Securities Act of 1933 pertaining to statements made in the Company’s registration statement for the Company’s IPO.

The original complaint charges Reliant Energy, Inc. and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. Specifically, the complaint alleges that on May 10, 2002 and May 13, 2002, defendants disclosed that the revenue of the Reliant Companies had been artificially inflated due to power trading transactions involving simultaneous purchases and sales at the same price (referred to as round-trip" trades). Defendants further disclosed that these "round trip" trades had the effect of materially and artificially increasing reported revenues over the three-year period of 1999, 2000 and 2001.

COMPANY INFORMATION:

Sector: Utilities
Industry: Electric Utilities
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: REI
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-01810
JUDGE: Hon. Ewing Werlein, Jr .
DATE FILED: 05/15/2002
CLASS PERIOD START: 05/01/2001
CLASS PERIOD END: 05/10/2002
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. Berger & Montague PC
    1622 Locust Street, Berger & Montague PC, PA 19103
    800.424.6690 215.875.4604 · investorprotect@bm.net
  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. Gold Bennett Cera & Sidener LLP
    595 Market Street, Suite 2300, Gold Bennett Cera & Sidener LLP, CA 94105-2835
    800.778.1822 415.777.5189 · info@gbcsf.com
  6. Goodkind Labaton Rudoff & Sucharow LLP
    100 Park Avenue, Goodkind Labaton Rudoff & Sucharow LLP, NY 10017
    212.907.0700 212.818.0477 · info@glrslaw.com
  7. Kirby McInerney & Squire LLP
    830 Third Avenue 10th Floor, Kirby McInerney & Squire LLP, NY 10022
    212.317.2300 ·
  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 Leo W. Desmond
    2161 Palm Beach Lakes Blvd., Suite 204, Law Offices of Leo W. Desmond, FL 33409
    888.337.6663 · Info@SecuritiesAttorney.com
  10. 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
  11. 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 ·
  12. Nix Patterson & Roach, LLP
    205 Linda Drive, Nix Patterson & Roach, LLP, TX 75638
    903.645.7333 ·
  13. Patton, Haltom, Roberts, McWilliams & Greer LLP
    2900 St. Michael Drive, Century Bank Plaza Suite 400, Box 6128, Patton, Haltom, Roberts, McWilliams & Greer LLP, TX 75505-6128
    903.334.7000 903.334.7000 · thefirm@pattonhaltom.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. Spector Roseman & Kodroff (San Diego)
    1818 Market Street, Suite 2500, Spector Roseman & Kodroff (San Diego), PA 19103
    215.496.0300 215.496.6611 ·
  17. 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
COURT: S.D. Texas
DOCKET #: 02-CV-01810
JUDGE: Hon. Ewing Werlein, Jr .
DATE FILED: 01/27/2003
CLASS PERIOD START: 02/03/2000
CLASS PERIOD END: 05/13/2002
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Berman DeValerio Pease Tabacco Burt & Pucillo (MA)
    One Liberty Square, Berman DeValerio Pease Tabacco Burt & Pucillo (MA), MA 2109
    617.542.8300 617.230.0903 · info@bermanesq.com
  2. Nickens Keeton Lawless Farrell & Flack LLP
    600 Travis Street, Suite 7500, Nickens Keeton Lawless Farrell & Flack LLP, TX 77002
    713-571-9191 713-571-9652 ·
No Document Title Filing Date
No Document Title Filing Date