FEDERAL JUDGE DISMISSES SECURITIES CLASS ACTION AGAINST STAR GAS, ITS DIRECTORS AND FORMER OFFICERS
STAMFORD, CT (August 22, 2006) Star Gas Partners, L.P. ("Star Gas" or "Company") announced today that the United States District Court for the District of Connecticut granted the motions of Star Gas, its general partner, former officers, directors and underwriters to dismiss with prejudice a consolidated class action complaint alleging violations of the Securities Act of 1933 and the Securities Exchange Act of 1934.
Several securities class actions had been filed within days of a drop in the trading price of Star Gas common units after the Company's October 18, 2004 announcement that it was suspending the quarterly distributions to its common unitholders and might have to seek to restructure its debts under the protection of the bankruptcy courts due to record heating oil prices and customer attrition. The Class Action Complaint alleged that numerous statements by the Company about its business made in SEC filings, press releases and conference calls were fraudulent. In dismissing the Complaint, District Judge Janet Bond Arterton specifically held that the plaintiffs failed to allege that Star Gas made any false or misleading statements.
According to Jonathan J. Lerner, a partner in Skadden, Arps, Slate, Meagher & Flom LLP, lead counsel for Star Gas, "The Court went through a painstaking analysis of all the securities law claims and decisively rejected all of them. This decision appears to be bullet-proof on appeal." Joseph P. Cavanaugh, Chief Executive Officer of the Company stated: "We are gratified by the Court's decision. We hope this will bring an end to the distraction from litigation."
CONTACT:
Star Gas Partners
Investor Relations
203/328-7310
Robert Rinderman, Steven Hecht
Jaffoni & Collins Incorporated
212/835-8500 or SGU@jcir.com
