NEW YORK, Oct. 29, 2008 (LAWFUEL) — On October 28, 2008,
Scott+Scott LLP filed a class action lawsuit against Constellation
Energy Group, Inc. (“Constellation Energy” or the “Company”)
(NYSE:CEG) and certain officers and directors of the Company in the
U.S. District Court for the District of Maryland. The action is on
behalf of those purchasing Constellation Energy common stock during the
period beginning January 30, 2008 and through September 16, 2008,
inclusive (the “Class Period”), for violations of the Securities
Exchange Act of 1934.
If you purchased Constellation Energy common stock during the Class
Period and wish to serve as a lead plaintiff in the action, you must
move the Court no later than November 21, 2008. Any member of the
investor class may move the Court to serve as lead plaintiff through
counsel of its choice, or may choose to do nothing and remain an absent
class member. If you wish to discuss this action or have questions
concerning this notice or your rights, please contact Scott+Scott
(scottlaw@scott-scott.com, (800) 404-7770, (860) 537-5537 or visit the
Scott+Scott website, http://www.scott-scott.com) for more information.
There is no cost or fee to you.
According to the complaint, during the Class Period, Constellation
Energy issued materially false and misleading statements regarding the
Company’s operations and financial performance. Among other things,
Defendants failed to disclose that the Company’s financial results were
inflated by questionable accounting practices. In addition, the Company
concealed the extent of its credit exposure to failing trading
partners, particularly Lehman Brothers Holding Inc., which would affect
the Company’s ability to engage in energy-related trades. As a result
of defendants’ false statements and omissions during the Class Period,
Constellation Energy common shares traded at artificially inflated
prices.
In August 2008, share prices of Constellation Energy softened as
analysts began to question certain aspects of the Company’s accounting,
particularly the Company’s questionable characterizations of
depreciation, cash flow and mark-to-market adjustments. Shortly
thereafter, on September 15, 2008, Lehman Brothers, a key trading
partner of Constellation Energy, filed for Chapter 11 bankruptcy
protection. On that day, investors were stunned as Constellation’s
business exposure to the Lehman bankruptcy was revealed. By the close
of the Class Period, the Company’s shares traded at $24.77 per share, a
75% loss from the Class Period high.
