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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)
    200 Broadhollow, Suite 406, Cauley Geller Bowman Coates & Rudman, LLP (New York), NY 11747
    631.367.7100 631.367.1173 ·
  2. Glancy Binkow & GoldBerg LLP
    1925 Century Park East, Suite 2100, Glancy Binkow & GoldBerg LLP, CA 90067
    310-201-9150 · info@glancylaw.com
  3. 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
  4. Murray, Frank & Sailer LLP (Milwaukee)
    3181 South 27th Street, Murray, Frank & Sailer LLP (Milwaukee), WI 53215
    866.264.3995 414.482.8001 · info@murrayfrank.com
  5. Schatz & Nobel, P.C.
    330 Main Street, Schatz & Nobel, P.C., CT 06106
    800.797.5499 860.493.6290 · sn06106@AOL.com
  6. Scott & Scott LLC (Connecticut)
    P.O. Box 192, 108 Norwich Avenue, Scott & Scott LLC (Connecticut), CT 06415
    860.537.5537 860.537.4432 · scottlaw@scott-scott.com
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
    100 North Phillips Avenue, Suite 402, Dougherty & Dougherty, LLP, SD 57101
    605.335.8586 605.331.2519 ·
  2. Hagen, Wilka & Archer, PC
    600 South Main Avenue, Suite 102, P.O. Box 964, Hagen, Wilka & Archer, PC, SD 57104
    605.334.0005 605.334.4814 ·
  3. Lerach Coughlin Stoia Geller Rudman & Robbin (San Francisco)
    100 Pine Street, Suite 2600, Lerach Coughlin Stoia Geller Rudman & Robbin (San Francisco), CA 94111
    415.288.4545 415.288.4534 · info@lerachlaw.com
  4. Lerach Coughlin Stoia Geller Rudman & Robbins LLP (San Diego)
    655 West Broadway, Suite 1900, Lerach Coughlin Stoia Geller Rudman & Robbins LLP (San Diego), CA 92101
    619.231.1058 619.231.7423 ·
  5. Milberg Weiss Bershad Hynes & Lerach LLP (S.F., CA)
    100 Pine Street - Suite 2600, Milberg Weiss Bershad Hynes & Lerach LLP (S.F., CA), CA 94111
    415.288.4545 415.288.4534 ·
  6. 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
  7. Scott & Scott LLC (Connecticut)
    P.O. Box 192, 108 Norwich Avenue, Scott & Scott LLC (Connecticut), CT 06415
    860.537.5537 860.537.4432 · scottlaw@scott-scott.com
No Document Title Filing Date