| Company: | Progress Energy Inc. |
| Ticker Symbol: | NYSE: PGN |
| Class Period: | November 30, 2000 to February 12, 2002 |
| Court: | Southern District, NY |
| Date Filed: | Feb-03-04 |
| Lead Plaintiff Deadline: | Apr-05-04 |
| Allegations: |
A class action lawsuit was filed on January 27, 2004 in the United States District Court for the Southern District of New York, on behalf of persons who obtained Contingent Value Obligations ("CVOs") in exchange for their Florida Progress common stock pursuant to the closing of the merger of CP&L Energy and Florida Progress Corporation and who purchased the CVOs in the period between November 30, 2000, and February 12, 2002, inclusive, (the "Class Period"). The lawsuit was filed against Progress Energy Inc. (NYSE: PGN) and William Cavanaugh III.
The complaint alleges that pursuant to the merger of CP&L Energy and the Florida Progress Corporation, Progress Energy, the merged Company, issued a proxy statement that contained material omissions concerning the value of the CVOs which had been used by the two companies to entice shareholders to approve the merger.
Specifically, Defendants, with full knowledge that the Fuel Credits underlying the CVOs would be subject to the alternative minimum tax ("AMT"), failed to inform prospective CVO holders that the tax benefits represented as being made available to synthetic fuel producers, which were critical to the imputed value of the CVOs, would be adversely affected by the application of the AMT. In addition, Defendants failed to inform prospective CVO holders that as a result of the application of the AMT, the fuel credits would not eliminate the federal income tax liability and the Company could not use the fuel credits to reduce its effective tax rate below 20%.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
The complaint alleges that pursuant to the merger of CP&L Energy and the Florida Progress Corporation, Progress Energy, the merged Company, issued a proxy statement that contained material omissions concerning the value of the CVOs which had been used by the two companies to entice shareholders to approve the merger.
Specifically, Defendants, with full knowledge that the Fuel Credits underlying the CVOs would be subject to the alternative minimum tax ("AMT"), failed to inform prospective CVO holders that the tax benefits represented as being made available to synthetic fuel producers, which were critical to the imputed value of the CVOs, would be adversely affected by the application of the AMT. In addition, Defendants failed to inform prospective CVO holders that as a result of the application of the AMT, the fuel credits would not eliminate the federal income tax liability and the Company could not use the fuel credits to reduce its effective tax rate below 20%.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
If you feel you qualify for damages or remedies that might be awarded in this class action please fill in our form on the right to submit your complaint.
If your injustice does not match the complaint described above, please use this form to register your complaint. Thank you.
