Shareholders Announce Class Action against Calpine

April 08, 2002 by Jeff Shepard

A class action lawsuit has been filed in the US District Court for the Northern District of California on behalf of purchasers of Calpine Corp. (San Jose, CA) securities between March 15, 2001, and December 13, 2001, inclusive. The complaint charges that Calpine and certain officers and directors violated sections of the Securities Exchange Act by issuing false and misleading statements concerning its business and financial condition.

In particular, the complaint charges that defendants issued opaque and confusing balance sheets that artificially inflated the company's reported earnings before interest, taxes, depreciation and amortization (EBITDA) and that as a result, members of the suit purchased Calpine shares at artificially inflated prices and suffered damages when the stock fell over 38 percent over a one-week period.