Scott+Scott, LLC Prevents Former CEO Phillip R. Bennett from use of Refco IPO Sales
Firm Reaches Agreement with Former Refco CEO to Indefinitely Enjoin Defendant Bennett From Dissipating Assets During Case
COLCHESTER, Conn., Dec. 2 — Scott+Scott, LLC (http://www.scott-scott.com), the nationally recognized firm at the front line in the Refco securities litigation, reached an agreement yesterday with Refco former CEO Phillip R. Bennett (“Bennett”), whereby, unless otherwise ordered by the Court, he is enjoined indefinitely during the pendency of the action from dissipating any and all proceeds he obtained from his sale of Refco stock in the August 2005 Initial Public Offering. Refco securities purchasers between August 11, 2005, and October 18, 2005, inclusive (the “Class Period”) are putative class members, but Scott+Scott encourages anyone who purchased these securities to contact the firm to discuss their rights. Bond purchasers dating back to the August 2004 bond offering are also welcome to join this all-securities class action. Scott+Scott has named twenty-seven defendants to date, but this number will increase as the firm prepares to file a more comprehensive complaint. The Scott firm represents major institutional and individual investors in this securities class action filed on October 11, 2005 in the United States District Court for the Southern District of New York regarding the Refco, Inc. (“Refco”) (OTC: RFXCQ.PK) fraud / negligent IPO ordeal (Case No. 1:05-cv-08663-DC).
If you wish to discuss this action or have questions concerning your rights, you may contact the firm for more information. Scott+Scott will provide class members with case materials, answer all questions regarding participation and assist with other services the firm provides. There is no cost or fee to class members. Contact Scott+Scott partner Neil Rothstein (nrothstein@scott-scott.com, 800/332-2259, ext. 22 or cell 619/251-0887). Institutional Investors may also contact the firm at InstitutionalInvestors@scott-scott.com. During morning EST hours, you can also contact the firm at 800/404-7770 or 860/537-3818. You can also communicate via facsimile at 860/537-4432 or 619/233-0508.
On October 31, 2005, based on a motion filed by Scott+Scott on behalf of the investor Class, as well as discussions with counsel for Bennett, the Court entered a Temporary Restraining Order to freeze over $111 million in assets that Bennett obtained from his Refco stock sales in the Company’s August 2005 IPO. The freezing of the assets was in effect pending a hearing scheduled for December 1, 2005. Scott+Scott, however, reached the aforementioned agreement with Bennett’s counsel yesterday prior to the scheduled hearing. An agreed order, which may well benefit the shareholders upon the successful resolution of the case, has been submitted to the Court.
Through Scott+Scott’s investigation, litigation and success in the freezing of Bennett’s assets during the pendency of this case, it is confident that a successful resolution will be reached and according to one source, these defendants have more than enough capital and/or insurance to cover the liabilities incurred by those damaged at the hands of the defendants’ negligence and fraud.
Scott+Scott, LLC is a nationally recognized class action law firm that has successfully achieved superior results against companies such as Mattel, Sprint, Royal Dutch/Shell, ImClone and Northwestern Energy. It is currently lead counsel in the securities litigation against Halliburton.
