Lawsuit Overview
June 12, 2003 - The court granted defendants' motion to dismiss and dismissed the case with prejudice.
December 6, 2002 - Defendants filed a motion to dismiss.
October 1, 2002 - The lead plaintiffs filed an amended consolidated complaint.
July 31, 2002 - Lead plaintiffs and lead counsels were appointed and all cases were consolidated.
July 11, 2002 - Lead plaintiff motions were filed.
May 8, 2002 - An investor in shares of Exelon Corporation (NYSE: EXC) filed a lawsuit in the U.S. District Court for the Northern District of Illinois against Exelon Corporation over alleged violations of Federal Securities Class in connection with certain allegedly false and misleading statements made between April 24, 2001 and September 27, 2001.
The complaint charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of materially false and misleading statements to the market between April 24, 2001 and September 27, 2001.
The complaint alleges that Exelon Corporation repeatedly issued statements concerning the strength of its operations and repeatedly assured the market that it would meet or beat its $4.50 per share earnings figure for 2001. The complaint alleges that these statements were materially false and misleading because they failed to disclose, among other things: (a) that the investments in telecommunications companies held by Exelon Corporation's Enterprises segment were plummeting in value at a rapid pace. Accordingly, Enterprises Corporation could not and would not meaningfully contribute to the Company's results and, in fact, the Company was carrying tens of millions of dollars of impaired investments on its financial statements; and (b) that InfraSource, Exelon Corporation's infrastructure subsidiary, was experiencing declining demand for its products as its primary customers, telecommunications companies, were facing severe industry-wide problems, such as mounting debt and over-capacity, and were significantly cutting back on their capital expenditures. On September 27, 2001, Exelon Corporation issued a press release announcing that it would not meet its earnings commitment of $4.50 for 2001, blaming the economy, poor weather and write-downs for failed investments made by the Enterprises unit. In reaction to the announcement, Exelon Corporation's common stock price plunged by 22%, falling to a low of $38.85 per share on September 27, 2001, after closing at $50.45 the previous day, on extremely heavy trading volume.