Perot Systems Sued Over Activities
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DALLAS (AP) _ Perot Systems Inc. has been charged in seven lawsuits since June over its actions in California, where officials charge the technology-services company helped energy firms gouge electricity customers.
Six of the lawsuits also name chairman Ross Perot and chief executive Ross Perot Jr. as defendants.
The lawsuits, which seek class-action status, charge the company with violating fraud and securities laws. They claim that the company’s regulatory filings didn’t accurately discuss the company’s California activities.
Perot Systems, based in the Dallas suburb of Plano, said the lawsuits are without merit and wouldn’t affect its financial results.
The company said it spent $3.5 million through June 30 on the investigation into its role in the California energy crisis and that it expects to incur more costs, which it couldn’t estimate.
The company disclosed the lawsuits in a filing Thursday with the Securities and Exchange Commission.
Two of the lawsuits that named the Perots and the company were filed in federal district court in New York and four were filed in federal court in Dallas, but one was transferred to a court in Sherman, 60 miles north of Dallas.
The case that named only the company was filed in June in San Diego, the company said.
Perot Systems was hired to help run the computers of two power exchanges in California, and state officials say the company tried to sell its inside knowledge of the state’s electric market to energy companies. Perot Systems says the information was publicly available.
In trading Friday morning, shares of Perot Systems fell 48 cents, or 4.2 percent, to $10.94.