Oct. 14--Utah's EnergySolutions Inc. is facing a new threat, one that goes beyond attempts to block it from burying foreign radioactive waste at its Tooele County disposal site.

A proposed shareholder class-action lawsuit, filed in the U.S. District Court for the Southern District of New York, is asking that EnergySolutions' initial public offering (IPO) of two years ago and a secondary offering the next year be rescinded.

The lawsuit contends the company and its officers and directors, in the offering prospectus, made false and misleading statements about EnergySolutions' financial condition, its business and future prospects, thereby inflating the price of the company's securities.

EnergySolutions went public in November 2007 selling 30 million shares of its stock for $23 each; it raised approximately $690 million. The secondary offering saw the company sell an additional 35 million at $19 each, which generated another $665 million.

"One thing you can say about this type of lawsuit -- you only see them when the share price has gone down," said Kathy Smith of Renaissance Capital, a Connecticut-based research firm that focuses on initial public offerings.

EnergySolutions' shares closed Tuesday at $8.68, down 62 percent from its initial offering price nearly two years ago. The company's share price, though, is up 54 percent since the first of the year.

Val Christensen, president of EnergySolutions said in a statement that the

allegations in the complaint are "baseless," and the lawsuit has no merit.

"We will continue to focus on our business while our attorneys pursue a vigorous defense in this matter," Christensen said, noting the company has consistently complied with all state and federal regulations in dealing with securities regulators.

The complaint, which also names the company's underwriters as defendants, wants to represent all EnergySolutions shareholders who purchased their stock between Nov. 14, 2007, and Oct. 14, 2008.

Also included in the complaint are allegations that EnergySolutions failed in its prospectus to disclose that economic problems in the United States and internationally were affecting the company's ability to secure projects that would adversely affect its future results.

For its second quarter ended June 30, EnergySolutions reported its revenue reached $373.6 million, compared to $460.3 million in the second quarter of 2008. Net income was $7.3 million, or 8 cents per share, compared to $12.6 million, or 14 cents per share a year earlier.

Commenting on the quarter, EnergySolutions CEO Steve Creamer said in a statement that each of the company's segments did well, considering the overall economic climate.

"Some of our commercial customers continue to delay sizable investments in waste remediation, removal and disposal. However, we expect most of this deferred work will eventually flow through EnergySolutions as the economy strengthens, stimulus capital is injected into the economy and confidence improves."

steve@sltrib.com

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