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| 2002 News and Press Releases |
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HEADLINE:
IPALCO, AES Lawyers Request Consolidation Of Cases; Combining Four Class-Action Lawsuits Alleging Securities Fraud Would Limit Overlap, Defense Attorneys Say
By: Scott Olson
Indianapolis Business Journal, Vol. 23; No. 40; Pg. 6A, December 9, 2002
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EXCERPT: Lawyers defending AES Corp. and former IPALCO Enterprises Inc. executives in four class-action lawsuits alleging securities fraud want a federal judge to consolidate the complaints into one case. The Baker & Daniels attorneys contend in a court filing that combining the suits will avoid redundant motions and duplicate discovery filings. They further say the actions arise from the same transactionathe exchange of IPALCO shares for AES stockaand have been brought by the same class of plaintiffs. "Consolidation enables a single judge to address overlapping legal issues at one time," the defense lawyers wrote. "Absent consolidation, more than one judge will needlessly spend time and effort addressing the same securities law issues a in separate actions." The New York-based law firm of Shalov Stone & Bonner LLP, along with lawyers from local Cohen & Malad LLP, represents AES shareholders in three lawsuits against Virginia-based AES and executives Dennis Bakke, Roger Sant and Barry Sharp. The lawyers allege the AES officers committed securities fraud by filing a false and misleading federal statement about AES' shaky financial situation before its acquisition of IPALCO in March 2001. Former IPALCO shareholders brought a similar class action in September, alleging IPALCO's ex-officers and directors misled investors about AES' financial condition and its share-price volatility before the sale. The 27 directors and officers sold 2.7 million shares from July 2000 until the deal closed the following March, for $ 23.83 to $ 24.36 each. The suit also takes issue with the fact insiders received more than $ 46 million in other compensation related to the sale. Following the acquisition, the value of AES stock plummeted more than 90 percent, as shares fell to a low of 92 cents from $ 52 at the time of the sale. The shares rose 63 cents Dec. 3 to $ 2.75, their highest level in two months, after most holders of $ 500 million of the power producer's bonds agreed to exchange the debt. The Dec. 3 deadline was extended to Dec. 6, however. AES says it needs to complete the exchange so banks will refinance $ 1.6 billion in debt. The move would avert a possible default and bankruptcy.
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