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Case Status:    SETTLED
On or around 01/14/2005 (Date of order of final judgment)

Filing Date: March 07, 2003

According to the Company’s Form 10-Q for the quarterly period ended March 31, 2005, the Company obtained approval of the memorandum of understanding (MOU) in the NorthWestern and Netexit bankruptcy cases on October 7, 2004 and September 15, 2004, respectively. Final approval of the consolidated securities class action settlement was granted by the federal District Court at a hearing on December 13, 2004, with a written order issued on January 14, 2005. No timely appeal has been filed from such order. On April 26, 2005, the district court in the consolidated derivative litigation issued an order granting the motion for approval of the settlement, and also issued a final judgment and order of dismissal with prejudice.

The Company's Form 10-Q for the quarterly period ended September 30, 2004, reported that the settlement fund established was in the amount of $41 million.

The Complaint charges NorthWestern and certain of its executive officers with violations of federal securities laws. Among other things, plaintiff claims that defendants' material omissions and the dissemination of materially false and misleading statements concerning NorthWestern's business operations and financial performance caused
NorthWestern's stock price to become artificially inflated, inflicting damages on investors. NorthWestern provides value-added energy and communications services, including air conditioning, heating, ventilation, plumbing and related services to residential and business customers nationwide. The complaint alleges that during the Class Period defendants misrepresented the Company's revenue and earnings by maintaining insufficient reserves for accounts receivables at the Company's communications subsidiary Expanets, and by failing to make full disclosures of problems with the implementation of a new "information technology system infrastructure." NorthWestern's problems were revealed on December 13, 2002, when the Company issued a press release disclosing that NorthWestern would dramatically miss its earnings estimates for 2002. The press release blamed the earnings shortfall on "the need to significantly increase reserves for accounts receivable" and "billing adjustments" at the Company's communications subsidiary, Expanets. Moreover, the Company press release revealed that defendants estimated the NorthWestern would need to increase its reserves "by at least $50 million" and that financial results for 2002 could not be reported until a year-end audit was completed. On the same
day as these disclosures, NorthWestern's stock plummeted 37% from the previous day's close, on higher than normal trading volume.

COMPANY INFORMATION:

Sector: Utilities
Industry: Electric Utilities
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: NOR
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. South Dakota
DOCKET #: 03-CV-4049
JUDGE: Hon. Lawrence L. Piersol
DATE FILED: 03/07/2003
CLASS PERIOD START: 08/02/2000
CLASS PERIOD END: 12/13/2002
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Cauley Geller Bowman Coates & Rudman, LLP (New York)
  2. Glancy Binkow & GoldBerg LLP
  3. Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA)
  4. Murray, Frank & Sailer LLP (Milwaukee)
  5. Schatz & Nobel, P.C.
  6. Scott & Scott LLC (Connecticut)
No Document Title Filing Date
COURT: D. South Dakota
DOCKET #: 03-CV-4049
JUDGE: Hon. Lawrence L. Piersol
DATE FILED: 07/21/2003
CLASS PERIOD START: 08/02/2000
CLASS PERIOD END: 04/15/2003
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Dougherty & Dougherty, LLP
  2. Hagen, Wilka & Archer, PC
  3. Lerach Coughlin Stoia Geller Rudman & Robbin (San Francisco)
  4. Lerach Coughlin Stoia Geller Rudman & Robbins LLP (San Diego)
  5. Milberg Weiss Bershad Hynes & Lerach LLP (S.F., CA)
  6. Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA)
  7. Scott & Scott LLC (Connecticut)
No Document Title Filing Date
—Related District Court Filings Data is not available