Constellation Faces Class Action After Stock Dims

Law360, New York (September 18, 2009, 1:37 PM EDT) -- Investors in Constellation Energy Group Inc. are suing to recover money they lost on the company's stock after a mistake led Constellation to underreport by more than $1 billion the amount of incremental collateral it would need in the event of a credit downgrade.

In an amended and consolidated class action filed Sept. 17 in the U.S. District Court for the District of Maryland, investors accused the company of negligence in underreporting that information and in failing to reveal the extent of Constellation's business relationships with...
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