NEW YORK, Aug. 7, 2006 (PRIMEZONE) -- Abbey Spanier Rodd Abrams & Paradis, LLP announces that on August 2, 2006 it filed a class action lawsuit in the United States District Court for the Southern District of New York on behalf of purchasers of the common stock and other securities of Scottish Re Group Ltd ("Scottish Re" or the "Company") (NYSE:SCT) who purchased during the period from December 16, 2005 through July 28, 2006 (the "Class Period").
The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market during the Class Period thereby artificially inflating the price of Scottish Re securities. The complaint alleges that Scottish Re and of its certain officers and directors violated the federal securities laws by making false and misleading statements and omissions concerning Scottish Re's financial health and business prospects, and covered up serious operational and financial problems. In February 2006, the Company reported robust earnings for the 4th quarter of 2005, announcing that this positive momentum would continue going forward. In early May 2006 the Company announced that it had refinanced, at favorable rates, all of its regulatory reserves for the business acquired in its acquisition of ING Re's reinsurance business. While the Company also reported reduced earnings for the first quarter of 2006, this was dismissed as temporary, and not a cause for concern.
Then on July 28, 2006, the defendants shocked the market by announcing that CEO Scott Willkomm had resigned, and that for the second quarter, the Company would report a huge loss of $ 130 million, and that results for the remainder of the year would be negatively affected. On this news the Company's share prices declined an astounding 75%, from $16.00 to $3.99, wiping out millions in shareholder value.
Plaintiff seeks to recover damages on behalf of all those who purchased or otherwise acquired Scottish Re securities during the Class Period. If you purchased or otherwise acquired Scottish Re securities during the Class Period, and either lost money on the transaction or still hold the securities, you may wish to join in the action to serve as lead plaintiff. If you purchased Scottish Re securities during the Class Period, you may, no later than October 2, 2006 request that the Court appoint you as lead plaintiff.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiffs." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff.
Abbey Spanier Rodd Abrams & Paradis, LLP has been retained to represent the Class. The attorneys at Abbey Spanier Rodd Abrams & Paradis, LLP have extensive experience in securities class action cases, and have played lead roles in major cases resulting in the recovery of over one billion dollars for investors. If you would like to discuss this action or if you have any questions concerning this Notice or your rights as a potential class member or lead plaintiff, you may contact:
Nancy Kaboolian, Esq. Abbey Spanier Rodd Abrams & Paradis, LLP 212 East 39th Street New York, New York 10016 (212) 889-3700 (800) 889-3701 (Toll Free) Or e-mail nkaboolian@abbeyspanier.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca