SOURCE: Kendall Law Group

Kendall Law Group

October 19, 2009 13:35 ET

Kendall Law Group Announces Securities Class Action Against EnergySolutions, Inc.

DALLAS, TX--(Marketwire - October 19, 2009) - Kendall Law Group, led by a former federal judge, today announced that a lawsuit has been filed against EnergySolutions, Inc. (NYSE: ES) for securities violations related to the company's initial public offering on November 14, 2007 and the Company's offering of securities on July 24, 2008, affecting stock purchased between November 14, 2007 and October 14, 2008.

The complaint, filed in the Southern District of New York, charges EnergySolutions, certain of its officers and directors, ENV Holdings, LLC and the main underwriters for the Offering with violations of the federal securities laws. According to the complaint, defendants made numerous positive statements regarding the company's financial condition, business and prospects by failing to disclose that the economic problems were adversely affecting their ability to secure projects, affecting its future results. The statements in their offering documents for the Offerings about the opportunities in the nuclear industry were misleading in that they were not well situated in the near term to benefit from those opportunities. On May 29, 2007, the Company filed a petition for rulemaking requesting that the Nuclear Regulatory Commission change well-established and longstanding regulations to allow funds from licensees' decommissioning trust funds to be used for the cost of disposal of major radioactive components that have been removed from reactors before the permanent cessation of operations. The business prospects of EnergySolutions were heavily dependent upon a favorable ruling from the NRC, even though the NRC had already addressed and rejected the issue since they had been clear that the purpose of the decommissioning trust funds is to ensure that licensees have adequate funds on hand for decommissioning activities at the time of license expiration. The rule change sought by the Petition was considerably more difficult and the risk was much higher.

EnergySolutions issued a press release on October 14, 2008, revealing that the company was reducing its estimates for net income and that the financial crisis would delay their ability to accelerate the decommissioning of nuclear power plan assets. The press release also indicated that the NRC denied the Petition for rulemaking change. On this announcement, EnergySolutions' stock dropped 44%, from $10.14 per share on October 13 to $5.64 on October 14 with extremely heavy trade volume.

Any shareholder, who purchased EnergySolutions stock during the above time period, may move the Court to serve as a plaintiff in this class action. If you wish to serve as lead plaintiff, you must move the Court for appointment by December 7, 2009. A lead plaintiff is a class member who acts on behalf of other class members in directing the litigation. Your ability to share in any recovery is not, affected by the decision to serve as a lead plaintiff. Any member of the 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.

Led by a former federal judge and former U.S. Attorney, Kendall Law Group has the credentials to pursue any type of complex securities litigation in the nation. If you wish to learn more about your rights as a shareholder, contact attorney Hamilton Lindley at 877-744-3728 or hlindley@kendalllawgroup.com.

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