NEW YORK, Sept. 15, 2006 (PRIMEZONE) -- Murray, Frank & Sailer LLP has filed a class action in the Southern District of New York on behalf of shareholders who purchased or otherwise acquired the securities of Scottish Re Group Limited ("Scottish Re" or the "Company") (NYSE:SCT) between February 17, 2005 and July 28, 2006, inclusive (the "Class Period").
The Complaint charges Scottish Re and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Scottish Re is a global life reinsurance specialist and issuer of customized life insurance-based wealth management products for high net worth individuals and families. The complaint also alleges that the Company failed to disclose and misrepresented the following material adverse facts: (1) that Company improperly valued allowances on deferred tax assets by at least $112 million; (2) that the Company improperly estimated retrocession costs, premium accrual, and lapse rates on certain fixed annuity treaties; (3) that the Company sought to manipulate its financial results because it was not able to effectively implement new initiatives in its key markets; (4) that the Company's financial statements were materially inflated; (5) that the Company's financial statements were presented in violation of Generally Accepted Accounting Principles ("GAAP"); (6) that the Company lacked adequate internal controls; and (7) that as a result of the above, the company's positive statements about the Company and its financial strength were lacking in any reasonable basis when made.
On July 31, 2006, before the market opened, Scottish Re shocked investors when the Company announced that, contrary to the Company's earlier positive guidance, the Company expected to report a net operating loss of approximately $130 million for the second quarter ended June 30, 2006, of which $112 million was due to the valuation of allowances on deferred tax assets. Additionally, the Company stated that it would suspend its ordinary share dividend and that it had engaged Goldman Sachs and Bear Stearns to assist the Company with evaluating strategic alternatives and potential sources of capital. Also on July 31, 2006, before the market opened, Scottish Re announced that the Company's President and Chief Executive Officer, defendant Scott E. Willkomm had resigned his position. On this news, shares of Scottish Re plummeted $12.01, or 75.06 percent, to close, on July 31, 2006, at $3.99 per share, on unusually heavy trading volume.
Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than fifteen years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.
If you purchased or otherwise acquired Scottish Re stock between February 17, 2005 and July 28, 2006 and sustained damages, you may, no later than October 2, 2006, move the Court to serve as lead plaintiff. Shareholders outside the United States may also join the action, regardless of which exchange was used to purchase the securities. You can join this class action as lead plaintiff online at http://www.murrayfrank.com/CM/NewCases/NewCases.asp. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff's counsel Bradley P. Dyer of Murray, Frank & Sailer LLP.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca