Allegheny Energy To Pay $13 Million To Settle 14 Class Action Suits

Law360, New York (October 7, 2005, 12:00 AM EDT) -- Allegheny Energy Inc. has settled 14 class action lawsuits, agreeing to pay $13 million to investors who claim they were misled about the company’s financial situation.

The lawsuits against the company, filed in the U.S. District Court for the District of Maryland, were originally filed separately and then consolidated.

The complaint alleged that “during the Class Period, Defendants issued to the investing public materially false and misleading statements concerning the Company’s operational strategy, operations, and financial results that inflated the price of Allegheny commons stock artificially.”...
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