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Wolf Haldenstein Adler Freeman & Herz LLP Announces Class Action Lawsuit Against Dynegy, Inc.

Business Editors/Legal Writers

NEW YORK--(BUSINESS WIRE)--May 1, 2002

Wolf Haldenstein Adler Freeman & Herz LLP announces that it filed a class action lawsuit in the United States District Court for the Southern District of New York on behalf of purchasers of Dynegy, Inc. ("Dynegy" or the "Company") (NYSE:DYN) securities between August 14, 2001 and April 24, 2002, inclusive, (the "Class Period") against defendants Dynegy and certain of its officers and directors. A copy of the complaint filed in this action is available from the Court or can be viewed on the Wolf Haldenstein Adler Freeman & Herz LLP website at http://www.whafh.com.

The Complaint, with index number 02 CV 3233, alleges that defendants violated the federal securities laws by issuing false and misleading statements throughout the Class Period that had the effect of artificially inflating the market price of the Company's securities. Specifically, the complaint alleges that during the Class Period, defendants issued to the investing public false and misleading financial statements concerning the Company's publicly reported revenues, earnings and cash flow. Moreover, the Company omitted to state material information necessary to be issued in order to make prior statements not misleading.

On April 25, 2002, before the market opened, Dynegy shocked the investing community by announcing that the Company would revise 2001 financial statements as the Securities and Exchange Commission probes its accounting of certain natural gas contracts. These disclosures concerning the true nature of the transactions referred to by Company executives as "Project Alpha," contradicted much of the information provided by defendants to the market during the Class Period concerning its reported revenues and caused the Company's common stock to plummet nearly 30% by the end of trading on April 25, 2002, on inordinately heavy volume. Also on April 25, 2002, Dynegy reported a net loss of $140 million dollars for the first quarter of 2002 which the Company attributed largely to a $300 million write-down of its telecommunications ventures.

Further, following the close of the Class Period, the Company disclosed on April 30, 2002, that it would report a $140 million loss for the first quarter of 2002 due mainly to costs associated with its underperforming telecommunications division.

If you purchased Dynegy, Inc. securities during the Class Period, and either lost money on the transaction or still hold the securities, you may, no later than June 25, 2002, request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiffs." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Wolf Haldenstein, or other counsel of your choice, to serve as your counsel in this action.

Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has approximately 60 attorneys in various practice areas; and offices in Chicago, New Jersey, New York City, San Diego, and West Palm Beach. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.

If you wish to discuss this action or have any questions, please contact Wolf Haldenstein Adler Freeman & Herz LLP at 270 Madison Avenue, New York, New York 10016, by telephone at (800) 575-0735 (Fred Taylor Isquith, Esq., Katherine B. DuBose, Esq., Gustavo Bruckner, Esq., Michael Miske, George Peters, or Derek Behnke), via e-mail at classmember@whafh.com or visit our website at http://www.whafh.com. Your e-mail should refer to Dynegy.
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Publication:Business Wire
Geographic Code:1USA
Date:May 1, 2002
Words:671
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