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Case Status:    SETTLED
On or around 08/26/2005 (Ongoing date of last review)

Filing Date: January 14, 2003

By the Order and Final Judgment entered on September 1, 2005, the Settlement and the Plan of Allocation are approved. Plaintiffs’ Lead Counsel is awarded 30% of the Settlement Fund in fees and $226,877.21 in reimbursement of expenses. The Action is dismissed with prejudice.

According to a press release dated April 15, 2005, Westar Energy, Inc. has reached an agreement in principle to settle pending shareholder securities class action and shareholder derivative lawsuits related to actions that occurred under former management. Under the terms of the settlement, the company will make a payment of $1.25 million and the company's insurance carriers will make a payment of $31.25 million.

As reported by the Company's FORM 10-Q for the quarterly period ended September 30, 2003, Plaintiffs filed a Consolidated Amended Complaint on July 15, 2003. The lawsuit is brought on behalf of purchasers of the Company's common stock between March 29, 2000, the date the company announced its intention to separate its electric utility operations from our unregulated businesses, and November 8, 2002, the date the KCC (Kansas Corporation Commission) issued an order prohibiting the separation. The complaint alleges that the Company violated federal securities laws by making material misrepresentations, or omitting material facts, concerning the purpose and benefits of the proposed separation, the compensation of the Company's senior management and the independence and functioning of its board of directors and that as a result the Company artificially inflated the price of its common stock. The consolidated complaint accuses Westar of making financial reports in direct violation of GAAP (Generally Accepted Accounting Principles) "in order to maintain an appearance of prospering performance and favorable financial results."

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 March 31, 2001 and December 26, 2002. Specifically, the original complaint alleges that these statements were materially false and misleading because they failed to disclose and/or misrepresented the following adverse facts, among others: (i) that the Company had engaged in certain trades that may have violated Federal Energy Regulatory Commission ("FERC") affiliate transaction rules, specifically that these transactions involved power sales from one Cleco Corporation ("Cleco") (NYSE:CNL) affiliate to Westar and then back to another or the same Cleco affiliate, these transactions totaled approximately $3.4 million in 2000, $12.6 million in 2001 and $3.8 million in 2002; and (ii) further as a result of a improper accounting practices regarding Westar's approximately 88% ownership of Protection One (NYSE:POI), a provider of property monitoring services, including electronic monitoring and maintenance of alarm systems, first and second quarter 2002 financial earning results had to be re-audited and restated.

The complaint further alleges that on December 26, 2002, the last day of the Class Period, Westar announced in a press release that it had received a subpoena from the Federal Energy Regulatory Commission on December 16, 2002, and that in addition to seeking details on trades with Cleco and its affiliates, FERC also requested documents concerning power transactions between Westar's system and marketing operations, and information on power trades in which Westar or other trading companies acted as intermediaries.


Sector: Utilities
Industry: Electric Utilities
Headquarters: United States


Ticker Symbol: WR
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: D. Kansas
DOCKET #: 03-CV-4003
JUDGE: Hon. Sam A. Crow
DATE FILED: 01/14/2003
CLASS PERIOD END: 12/26/2002
  1. Bernstein Liebhard & Lifshitz, LLP (New York)
    10 E. 40th Street, 22nd Floor, Bernstein Liebhard & Lifshitz, LLP (New York), NY 10016
    800.217.1522 ·
  2. Brodsky & Smith, LLC (former Pennysylvania)
    11 Bala Avenue, Suite 39, Brodsky & Smith, LLC (former Pennysylvania), PA 19004
    610.668.7987 610.660.0450 ·
  3. 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 ·
  4. Faruqi & Faruqi LLP (New York) (former)
    320 East 39th Street, Faruqi & Faruqi LLP (New York) (former), NY 10016
    212.983.9330 212.983.9331 ·
  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 ·
  6. 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 ·
  7. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 ·
No Document Title Filing Date
COURT: D. Kansas
DOCKET #: 03-CV-4003
JUDGE: Hon. Sam A. Crow
DATE FILED: 07/15/2003
CLASS PERIOD END: 11/08/2002
  1. Schoengold & Sporn PC (New York)
    233 Broadway 39Th Floor, Schoengold & Sporn PC (New York), NY 10279
    212.964.0046 ·
  2. Swanson Midgley LLC (former)
    2420 Pershing Road. Suite 400, Swanson Midgley LLC (former), MO 64108-2505
    816.842.6100 816.842.6100 ·
No Document Title Filing Date
No Document Title Filing Date