June 9, 2003

Amended Complaint In Dynegy Case

The Houston Chronicle reports (in last Friday's edition) that an amended complaint has been filed in the securities class action against Dynegy, Inc. (NYSE: DYN). The amended complaint alleges that Dynegy hid an $850 million loan from Citicorp, known as the "Black Thunder" transaction, in an off-balance-sheet company in 2000 to avoid a downgrade of Dynegy's debt. The Black Thunder loan is one of two transactions cited in the suit.

Quote of note: "The deadline for filing the amended complaint against Dynegy had been extended numerous times to enable the company and plaintiffs time to negotiate a settlement. A spokesman for the University of California [the lead plaintiff in the case] would not confirm whether those talks were still under way but said the school remains open to settlement talks."

Posted by Lyle Roberts at June 9, 2003 5:15 PM | TrackBack
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