Progress Energy, Inc. : Hagens Berman Investigates Extending Class Period in Duke Energy Corporation and Progress Energy, Inc. Lawsuit; Notice of Deadlines
07/26/2012| 09:35am US/Eastern
Hagens Berman Sobol Shapiro LLP, a national investor-rights law firm,
today announced it is investigating extending the class period in the
Duke Energy Corporation (NYSE:DUK) ("Duke") and Progress Energy, Inc.
(NYSE:PGN) ("Progress Energy") securities class-action lawsuit, which
currently is limited to investors who acquired New Duke shares as part
of the companies' merger or who purchased DUK common stock between June
28, 2012 and July 9, 2012. The extended period would include those who
purchased Duke or PGN shares after the merger was first announced in
Investors may, no later than Sept. 24, 2012, request that the Court
appoint them as lead plaintiff for the class.
The suits, filed July 24, 2012, allege that Duke misled shareholders
regarding details of their merger. Specifically, the complaints allege
that since Jan. 8, 2011, Duke Energy told investors that following the
merger Progress Energy's CEO, William D. Johnson, would take over as CEO
of the newly formed company, called New Duke, and that Duke Energy's
CEO, James E. Rogers, would be chairman of New Duke's board.
As part of the merger, investors exchanged shares of Progress Energy for
shares of Duke stock. On July 2, 2012, just after shares were exchanged,
New Duke replaced Johnson, appointing former Duke Energy CEO James E.
Rogers in his place, according to the suit. Within days it became
apparent that Johnson was fired, and that the Duke directors never
intended that he become CEO.
"This pre-meditated ambush on Johnson and PGN shareholders, admittedly
undisclosed to get the merger completed, is one of the more incredulous
frauds on investors we have seen in years," said Hagens Berman partner
Reed R. Kathrein, who is leading the firm's investigation.
Following the news, Duke shares have fallen, credit ratings agency
Standard & Poor's has warned that it may cut the ratings of Duke, and
North Carolina regulatory agencies and the attorney general have started
Investors who purchased or acquired shares of Progress or Duke since
Jan. 8, 2011, held those shares as of July 9, 2012, and who suffered
substantial financial losses greater than $100,000 are encouraged to
contact Hagens Berman partner Reed R. Kathrein, who is leading the
firm's investigation. Investors can contact Mr. Kathrein by calling
(510) 725-3000 or by emailing DUK@hbsslaw.com.
Any member of the putative class may move the Court to serve as lead
plaintiff in the filed class-action lawsuit through counsel of their
choice, or may choose to do nothing and remain an absent class member.
The current classes of the suits on file are "all persons who exchanged
shares of Progress Energy, Inc. (NYSE:PGN) common stock for shares of
Duke Energy Corporation (DUK) common stock in connection with the merger
between Progress and Duke" and "all persons who purchased or otherwise
acquired Duke common stock between June 28, 2012 and July 9, 2012 (the
"Class Period"), inclusive."
More information about this lawsuit is available at www.hb-securities.com/investigations/DUK.
Hagens Berman Sobol Shapiro LLP is an investor-rights class-action law
firm with offices in 10 cities. The firm represents whistleblowers,
workers and consumers in complex litigation. More about the law firm and
its successes can be found at www.hbsslaw.com.
The firm's securities law blog is at www.meaningfuldisclosure.com.
Firmani + Associates
Mark Firmani, 206-443-9357
© Business Wire 2012