LIONEL Z. GLANCY (#134180)
MICHAEL GOLDBERG (#188669)
GLANCY & BINKOW LLP
1801 Avenue of the Stars, Suite 311
Los Angeles, California 90067
Telephone: (310) 201-9150
Facsimile: (310) 201-9160
Attorney for Plaintiff Marvin Goldfarb
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF TEXAS
MARVIN GOLDFARB, On Behalf of No.
Himself and All Others Similarly
Situated,
CLASS ACTION COMPLAINT
Plaintiff, FOR VIOLATION OF THE
vs. FEDERAL SECURITIES LAWS
EL PASO CORPORATION, WILLIAM
WISE, RODNEY D. ERSKINE, and H. JURY TRIAL DEMANDED
BRENT AUSTIN,
Defendants.
Plaintiff Marvin Goldfarb, by his attorney, for his Class Action Complaint (the "Complaint")
alleges the following upon personal knowledge as to himself and his own acts and upon information
belief based upon the investigation of plaintiff's attorney as to all other matters. The
includes the thorough review and analysis of public statements, publicly filed documents of El Paso
Corporation ("El Paso" or the "Company"), press releases, news articles and the review and analysis
accounting rules and related literature. Plaintiff believes that further substantial evidentiary
exist for the allegations set forth below after a reasonable opportunity for discovery.
SUMMARY OF ACTION
1. This is a securities class action on behalf of public investors who purchased the
common stock of El Paso during the period from July, 25, 2001, to May 29, 2002 (the "Class
Period").
SNIPPETS:
Attorney for Plaintiff Marvin Goldfarb
EL PASO CORPORATION, WILLIAM
Plaintiff Marvin Goldfarb, by his attorney, for his Class Action Complaint
a North American provider of natural gas services, with core businesses in natural gas
1) Pipelines; 2) Merchant Energy; 3) Production; and 4) Field Services.
On July 25, 2001, the first day of the Class Period, defendants disseminated a press
boost the Company's trading volume through sham "round-trip" trading of natural gas,
increase the demand for natural gas, thus artificially raising natural gas prices, by
from the Company's pipelines to California.
This government scrutiny of energy traders' trading and accounting
false and misleading statements concerning the energy-trading and accounting practices at El
The claims asserted arise under §§10and 20of the Securities
Exchange Act of 1934.
wrongs alleged herein, the Chairman, President, Chief Executive Officer and a director of El
Because of the Individual Defendants' positions with the Company,
release titled "El Paso Reports 36-Percent Increase in Second Quarter 2001 Adjusted Earnings
HOUSTON, TEXAS, July 25, 2001-El Paso Corporation today reported that adjusted diluted
The adjusted results exclude net after-tax merger-related costs, asset impairments, and other
Consolidated earnings before interest expense and taxes (EBIT), adjusted for non-recurring
For the first six months of 2001, diluted earnings per share increased 39 percent to an
Total pipeline system throughput for the second quarter 2001 averaged 18,479 billion British
The company's realized natural gas price rose to $3.49 per thousand cubic feet from $2.56 per
HOUSTON, TEXAS, August 1, 2001-Recent industry filings at the Federal Energy Regulatory
Adjusted net income rose 43 percent to $405 million in 2001 from an adjusted $284 million in
dissemination of such statements or documents as primary violations of the federal securities
Made untrue statements of material facts or omitted to state material facts necessary
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