NEW YORK, Aug. 8, 2006 (PRIMEZONE) -- Wechsler Harwood LLP today announced that it has filed a class action suit on behalf of all securities purchasers of Scottish Re Group LTD (NYSE:SCT) ("Scottish Re'" or the "Company"') between December 16, 2005 through July 28, 2006 (the "Class Period").
The action, entitled, Komito v. Scottish Re Group Ltd., Case No. 06-CV-5994, is pending in the United States District Court for the Southern District of New York, and names as defendants, the Company as well as certain senior officers and directors. A copy of the complaint can be obtained from the Court or can be viewed on Wechsler Harwood's web site at: www.whesq.com.
The complaint alleges that Scottish Re and certain of its officers and directors violated federal securities laws by making false and misleading statements and omissions concerning Scottish Re's financial health and business prospects. It also alleges that the Company and its officers and directors covered up serious operational and financial problems. In February 2006, the Company reported strong earnings for the 2005 fourth quarter, they also stated that this positive momentum would continue going forward. In early May 2006 Scottish Re announced that it had refinanced, at favorable rates, all of its regulatory reserves for the business acquired in its acquisition of ING, Scottish Re's reinsurance business. The Company also reported reduced earnings for the first quarter of 2006, but dismissed it as temporary, and certainly not a cause for major concern.
However, on July 28, 2006, the defendants jolted the market on news that CEO Scott Willkomm had resigned, and that for the second quarter, the Company would report a gigantic 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 plummeted from $16.00 to $3.99, a 75% decline.
If you purchased or otherwise acquired Scottish Re securities during the Class Period, you may request that the Court appoint you as lead plaintiff by October 2, 2006. 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 plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Wechsler Harwood, or other counsel of your choice, to serve as your counsel in this action
Wechsler Harwood has taken a leading role in many important actions on behalf of defrauded shareholders. The Wechsler Harwood website (www.whesq.com) has more information about the firm and detailed information regarding this matter. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following:
Wechsler Harwood LLP Craig Lowther: clowther@whesq.com 488 Madison Avenue, 8th Floor New York, New York 10022 Toll Free Telephone: (877) 935-7400 (ext. 257) http://www.whesq.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca