A class action lawsuit has been filed in the US on behalf of the shareholders of American Electric Power (AEP) who purchased stakes during the period 25 July 1997 to 25 June 1999. The action centres on claims that AEP made false and misleading statements on the condition of the DC Cook nuclear plant that inflated the share price. AEP maintains that all appropriate disclosures regarding the DC Cook facility were made.
The suit has been filed by Milberg Weiss Bershad Hynes and Lerach and is to be heard in the US District Court of New York. AEP spokesman Pat Hemlepp, referring to the action, would not comment on whether the company would defend any potential shareholder lawsuit. Hearings should begin over the next few months.