NEW YORK, NY- LAWFUEL – Law News Network -Aug 3, 2006 — The Paskowitz Law Firm, P.C. announces that it has 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 – News) who purchased during the period from December 16, 2005 through July 28, 2006 (the “Class Period”).
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The complaint alleges that Scottish Re and some of its 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 fourth 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.
If you purchased Scottish Re stock or other securities during the Class Period, you may qualify to serve as Lead Plaintiff on behalf of the Class, which consists of all persons and entities who purchased Scottish Re stock or other securities from December 16, 2005 through July 28, 2006. You are not required to have sold your Scottish Re stock or other securities in order to claim damages, or to serve in this role. All motions for appointment as Lead Plaintiff must be filed with the Court by October 2, 2006.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to this matter, please contact Laurence Paskowitz. Mr. Paskowitz will personally speak with you at no cost or obligation.