RADNOR, Pa., Aug. 7 LAWFUEL – Press Release Network — The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Southern District of New York, on behalf of all purchasers of the common stock of Scottish Re Group Limited (NYSE: SCT – News; “Scottish Re” or the “Company”) from February 17, 2005 to July 28, 2006, inclusive (the “Class Period”).
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Darren J. Check, Esq. or Richard A. Maniskas, Esq.) toll-free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at [email protected]
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 alleges that the Company failed to disclose and misrepresented the following material adverse facts: (1) that defendants 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 defendants’ 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.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, which prosecutes class actions in both state and federal courts throughout the country. Schiffrin & Barroway is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. For more information about Schiffrin & Barroway, or to sign up to participate in this action online, please visit http://www.sbclasslaw.com.
If you are a member of the class described above, you may, not later than October 2, 2006, move the Court to serve as lead plaintiff of the class, if you so choose. 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 Schiffrin & Barroway, or other counsel of your choice, to serve as your counsel in this action.