Milberg Weiss Expands Class Period for Class Action Suit Filed Against Enron Corporation

Business Wire, Nov 13, 2001

Business Editors/Financial Analysts

SAN DIEGO--(BUSINESS WIRE)--Nov. 13, 2001

Milberg Weiss (http://www.milberg.com/enroncorp) today announced that a class action has been commenced in the United States District Court for the Southern District of Texas on behalf of purchasers of Enron Corporation ("Enron") (NYSE:ENE) common stock during the period between October 19, 1998 and November 7, 2001 (the "Class Period").

If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from October 22, 2001. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, William Lerach or Darren Robbins of Milberg Weiss at 800/449-4900 or via e-mail at wsl@milberg.com or Steven G. Schulman or Samuel H. Rudman at 800/320-5081 or via e-mail at enroncase@milbergny.com. If you are a member of this class, you can join this class action online at http://www.milberg.com/enroncorp/. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

The complaint charges Enron, certain of its officers and directors and its auditors with violations of the Securities Exchange Act of 1934. Enron is engaged in the businesses of natural gas, electricity and communications to wholesale and retail customers. The complaint alleges that during the Class Period, defendants issued favorable but false financial statements and made false and misleading statements about the Company's business. As a result of these false statements, the Company's stock traded as high as $90.75. Defendants took advantage of this artificial inflation, selling 7.3 million shares of their Enron stock for proceeds of $434 million.

It was subsequently revealed that the Company would be incurring losses of $1 billion for certain of its divisions. Then, on November 8, 2001, prior to the markets opening, Enron announced it was restating its results for 1997, 1998, 1999 and 2000, and the first two quarters of 2001 to correct for errors which had inflated Enron's net income by $591 million in those years and that audit reports for those years should not be relied upon. The impact of the restatement was enormous. Upon these disclosures, Enron's stock dropped to as low as $8.20 before closing at $8.41 on November 8, 2001, some 91% below the Class Period high of $90.75.

Plaintiff seeks to recover damages on behalf of all purchasers of Enron common stock during the Class Period (the "Class"). The plaintiff is represented by Milberg Weiss Bershad Hynes & Lerach LLP, who has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.

Milberg Weiss Bershad Hynes & Lerach LLP, a 170-lawyer firm with offices in New York, San Diego, San Francisco, Los Angeles, Boca Raton, Seattle and Philadelphia, is active in major litigations pending in federal and state courts throughout the United States. Milberg Weiss has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of World War II and other human rights violations, and has been responsible for more than $30 billion in aggregate recoveries. The Milberg Weiss website (http://www.milberg.com) has more information about the firm.