CEG Constellation Energy Grp. Common Stock

Coughlin Stoia Geller Rudman & Robbins LLP (�Coughlin Stoia�) (http://www.csgrr.com/cases/constellation/) today announced that a class action has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of Constellation Energy Group, Inc. (�Constellation�) (NYSE:CEG) publicly traded securities during the period between January 30, 2008 and September 16, 2008 (the �Class Period�), including the Series A Junior Subordinated Debentures (the �Preferred Securities�), pursuant and/or traceable to the Company�s Registration Statement and Prospectus (collectively, the �Registration Statement�) issued in connection with the Company�s June 27, 2008 Preferred Securities offering. If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff�s counsel, Darren Robbins of Coughlin Stoia at 800/449-4900 or 619/231-1058, or via e-mail at djr@csgrr.com. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.csgrr.com/cases/constellation/. Any member of the putative 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 Constellation and certain of its officers and directors and its underwriters with violations of the Securities Exchange Act of 1934 and the Securities Act of 1933. Constellation is an energy company that conducts its business through various subsidiaries. The complaint alleges that due to defendants� positive, but false, statements, Constellation�s stock closed as high as $88.25 per share on June 9, 2008. On June 27, 2008, defendants consummated the sale of Constellation�s Preferred Securities pursuant to the false and misleading Registration Statement, selling 18 million shares at $25.00 per share for proceeds of approximately $435.8 million. In July 2008, the Company reported favorable financial results and reaffirmed EPS guidance of $5.25-$5.75 per share for 2008. In August 2008, analysts questioned Constellation�s accounting and the implications of a credit downgrade. Then, on September 15, 2008, investors and the market became aware of Constellation�s exposure to Lehman Brothers Holdings Inc.�s (�Lehman�) bankruptcy, which affected the Company�s ability to engage in energy-related trades. With this news, Constellation�s shares plunged to $47.99, a 50% drop from the Company�s Class Period high of $97.34 per share. According to the complaint, defendants were aware of the following material undisclosed information which contradicted their public statements, including in the Registration Statement/Prospectus: (a) defendants were inflating Constellation�s results through manipulations relating to the characterization of depreciation expense which inflated the Company�s reported cash flows; (b) the Company�s financial results were inflated by overly optimistic assumptions which were reflected in mark-to-market accounting; (c) the Company�s exposure to credit problems of trading partners was much greater than represented � in fact, one of Constellation�s key trading partners, Lehman, was having severe financial problems; and (d) the Company was not on track to report 2008 EPS of $5.25+ per share. Plaintiff seeks to recover damages on behalf of all purchasers of Constellation publicly traded securities during the Class Period (the �Class�). The plaintiff is represented by Coughlin Stoia, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud. Coughlin Stoia, a 190-lawyer firm with offices in San Diego, San Francisco, Los Angeles, New York, Boca Raton, Washington, D.C., Philadelphia and Atlanta, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. The Coughlin Stoia Web site (http://www.csgrr.com) has more information about the firm.