Cohen, Milstein, Hausfeld & Toll, P.L.L.C. Announces that Class Action Suits Against Enron Corporation Have Expanded their Class Periods

Business Wire, Nov 14, 2001

Business Editors, Legal Writers

WASHINGTON--(BUSINESS WIRE)--Nov. 14, 2001

The following notice is issued by the law firm of Cohen, Milstein, Hausfeld & Toll, P.L.L.C., on behalf of its client, who, along with other firms, previously filed a lawsuit in the United States District Court for the Southern District of Texas (Houston Division), on behalf of purchasers of the common stock of Enron Corporation ("Enron" or the "Company") (NYSE:ENE).

The complaint alleges that the defendants violated section 10(b) of the Securities Exchange Act of 1934 ("The Exchange Act"), and Rule 10b-5 promulgated thereunder, and that defendants' wrongful conduct artificially inflated the price of Enron common stock during the Class Period. The prior complaints charged that during 2000 and 2001 the defendants misrepresented and concealed material facts concerning the Company's financial transactions with two partnerships established by Enron's then Chief Financial Officer, which resulted in substantial losses to Enron and a reduction in shareholders' equity of over $1 billion.

As the result of the Company's November 8, 2001 announcements, however, the class period has been extended to encompass all purchasers of Enron common stock from October 19, 1998 through November 7, 2001. On November 8, 2001, prior to the markets opening, Enron announced it was restating its financial 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 hundreds of millions of dollars in those years and that audit reports for those years should not be relied upon. Upon these disclosures, Enron's stock dropped to $8.41 per share on November 8, 2001, down from a Class Period high of $90.

Plaintiff's counsel -- Cohen, Milstein, Hausfeld & Toll, P.L.L.C. -- has significant experience in prosecuting investor class actions and actions involving financial fraud. The firm has offices in Washington, D.C., Seattle, Washington and New York, New York and is active in major litigation pending in federal and state courts throughout the nation.

The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm to lead positions in complex multi-district or consolidated litigation. Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has taken a lead role in numerous important cases on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total hundreds of millions of dollars or more.

If you purchased shares of Enron stock during the Class Period, you may move the Court no later than December 21, 2001 to serve as lead plaintiff for the Class. In order to serve as lead plaintiff, you must meet certain legal standards.

If you have any questions about this notice or the action, or with regard to your rights, please contact either of the following:

Andrew N. Friedman, Esq.

or

Mary Ann Fink

Cohen, Milstein, Hausfeld & Toll, P.L.L.C.

1100 New York Avenue, NW

West Tower, Suite 500

Washington, DC 20005

Telephone: 888/347-4600 or 202/408-4600

E-mail: afriedman@cmht.com or mfink@cmht.com