Charles H. Johnson & Associates Announces Filing of Securities Class Action Against Constellation Energy Group, Inc.
MINNEAPOLIS, Nov. 13, 2008 (GLOBE NEWSWIRE) — Charles H. Johnson & Associates announces that a class action has been commenced in the United States District Court for the District of Maryland on behalf of purchasers of Constellation Energy Group, Inc. (“Constellation” or the “Company”) (NYSE:CEG) publicly traded securities during the period January 30, 2008 through September 16, 2008 (the “Class Period”).
If you are a member of the proposed Class, you may move the Court to serve as a lead plaintiff for the Class on or before November 21, 2008. You do not need to be a lead plaintiff in order to share in any recovery that may be obtained.
The Complaint alleges that during the Class Period, Constellation Energy issued materially false and misleading statements regarding the Company’s operations and financial performance. 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, Constellation Energy’s share prices 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.
If you purchased Constellation Energy Group, Inc. securities during the Class Period, or have any questions concerning this notice or your rights with respect to this matter, please contact:
Neal Eisenbraun, Esq. (firstname.lastname@example.org) Charles H. Johnson & Associates 2599 Mississippi Street New Brighton, MN 55112 (651) 633-5685
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CONTACT: Charles H. Johnson & Associates (651) 633-5685