| Company: | Constellation Energy Group |
| Ticker Symbol: | CEG |
| Class Period: | Jan-30-08 to Nov-25-08 |
| Date Filed: | Nov-25-08 |
| Lead Plaintiff Deadline: | Jan-24-09 |
| Court: | District of Maryland |
| Allegations: | |
The complaint alleges that Plan fiduciaries breached their duties to Plan participants and beneficiaries by continuing to invest in and hold Constellation Energy stock despite the fact that they knew or should have known that such investment was imprudent due to the fact that, inter alia: (a) defendants were inflating Constellation's results through manipulations relating to the characterization of depreciation expense which inflated the Company's reported cash flows; (b) the Company's financial results were inflated by overly optimistic assumptions; (c) the Company's exposure to credit problems of trading partners was much greater than represented, and indeed, one of Constellation's key trading partners, Lehman Brothers, was having severe financial problems; (d) the Company was not on track to report 2008 EPS of $5.25+ per share, as expected; and (e) as a consequence of the above, the Company's stock price was artificially inflated. Notwithstanding the above, the complaint alleges that Plan fiduciaries maintained a large investment of Plan assets in Company stock at a time when they should have known that it was an unsuitable as a savings and retirement investment. Constellation Energy employees who had a significant amount of Plan assets in Company stock have incurred a substantial loss in their retirement investment.
A breach of fiduciary duty occurs when fiduciaries fail to manage the assets of the Plan in the sole interest of the plan participants by investing the assets in Company stock when it is no longer a prudent investment for participants' retirement savings.
The proposed class includes all persons who were participants in or beneficiaries of the Constellation Energy Group, Inc. Employee Savings Plan and whose accounts in the Plan were invested in Constellation Energy stock at any time during the period January 30, 2008 through the present. Excluded from the class are any defendants, their officers and directors, members of their immediate families, or their heirs, successors or assigns.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
