Court Grants Scott+Scott, LLC’s Motion to Restrain Refco, Inc. CEO Phillip R. Bennett From Dissipating Personal IPO Proceeds
COLCHESTER, Conn., Nov. 2 — Scott+Scott, LLC (http://www.scott-scott.com) represents investors in a securities class action filed on October 11, 2005 in the United States District Court for the Southern District of New York against Refco, Inc. (“Refco”) and other defendants (Case No. 1:05-cv-08663-DC). Refco securities purchasers between August 11, 2005, and October 18, 2005, inclusive (the “Class Period”) are putative class members.
On October 31, 2005, based on a motion filed by Scott+Scott, representing both institutional and individual shareholders in this matter, on behalf of the investor Class, as well as discussions with counsel for plaintiff and Bennett, the Court entered a Temporary Restraining Order (“TRO”) to freeze assets that suspended CEO Phillip R. Bennett (“Bennett”) obtained from his Refco stock sales in the Company’s August 2005 Initial Public Offering (“IPO”). The TRO is in effect pending an Order to Show Cause hearing scheduled for December 1, 2005, at which time the Court will determine whether or not a more permanent restraining order should be issued maintaining the asset-freeze injunction throughout the pendency of the litigation. Refco filed for bankruptcy protection on October 17, 2005.
Scott+Scott’s original complaint alleges that during the Class Period, Refco and certain of its officers and directors, including Bennett, as well as Refco’s IPO underwriters and independent auditor, violated provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934, by issuing a false and misleading Prospectus to investors as well as making false and misleading statements during the Class Period. It is alleged that because of these securities law violations, investors were deceived out of over a billion dollars while Bennett personally made off with over $111 million. Scott+Scott’s clients seeks to secure Bennett’s improperly obtained assets for the benefit of investors who, because of the Refco bankruptcy, might be unable to look to the insolvent Company for relief.
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 ([email protected], 800/332-2259, ext. 22 or cell 619/251-0887). Institutional Investors may also contact the firm at [email protected]
The plaintiff is represented by Scott+Scott, LLC, which has significant experience in prosecuting investor class actions. The firm dedicates itself to client communication and satisfaction and currently is litigating major securities, antitrust and employee retirement plan actions throughout the United States. The firm represents pension funds, charities, foundations, individuals and other entities worldwide. Cases currently being litigated and/or investigated by Scott+Scott, LLC include: DHB Industries, Inc.; Boston Scientific Corp.; Abercrombie & Fitch Co.; Cott Corp.; Packeteer Inc.; Mercury Computer Systems Inc.; TNS Inc., and International Rectifier Corp., among others.