NEW YORK, April 28, 2006 (PRIMEZONE) -- Attorney Christopher Gray of the Law Office of Christopher J. Gray, P.C. in New York City (newcases@cjgraylaw.com) has filed a class action lawsuit on behalf of all persons who purchased the securities of defendant Sea Containers, Ltd. (NYSE:SCR.A) from March 15, 2004 through March 24, 2006 (the "Class Period"). The lawsuit asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated by the SEC thereunder and seeks to recover damages. Any member of the class may move the Court to be named lead plaintiff. If you wish to serve as lead plaintiff, you must move the Court no later than May 30, 2006.
The Sea Containers class action lawsuit is pending in the U.S. District Court for the Southern District of New York (500 Pearl Street, New York, NY 10007), Docket No. 06-CV-2565. According to the complaint, defendants made misstatements of material facts and omitted to state material facts in violation of the federal securities laws. Specifically, the complaint alleges that during the Class Period, defendants caused the share price of Sea Containers stock to be artificially inflated by misrepresenting to the public that Sea Containers' reported financial results presented fairly, in all material respects, the financial position of the Company, and that Sea Containers had a system of internal controls that was adequate to ensure that the Company's reported financial results were accurate. The complaint alleges that, unbeknownst to plaintiff and the class, the true facts were as follows:
a. Sea Containers' reported financial results were inaccurate and
cannot be relied upon;
b. Sea Containers' internal controls were inadequate to ensure the
reliability of its publicly reported financial results;
c. Sea Containers had materially overstated the value of (and
failed to write down the value of) its investment in the common
stock of Orient-Express Hotels Ltd.; and
d. The value of the Sea Containers' ferry and container assets was
materially impaired.
The complaint alleges that when Sea Containers shocked Wall Street by revealing that it would have to take a mammoth writedown of its assets in a sum that it estimated as $500 million, that it would miss the deadline for filing its 2005 annual report, and that its publicly reported financial results for the first three quarters of 2005 should not be relied upon and will have to be restated, the Company's stock plummeted from a close of $12.06 per share on March 23 to as low as $7.34 on March 24, before closing at $7.45 -- a drop of 38% in a single day!
The class action lawsuit seeks to recover investors' losses resulting from defendants' alleged misrepresentations concerning Sea Containers' assets, internal controls and financial results.
The Law Office of Christopher J. Gray, P.C.'s practice is concentrated in complex litigation, class action litigation, and securities arbitration. The firm represents individual investors in both class action cases and individual cases. Investors with questions about the Sea Containers class action may contact Attorney Christopher Gray at the e-mail address, address, fax number, or telephone number below.
Law Office of Christopher J. Gray, P.C.
Christopher J. Gray
460 Park Avenue, 21st Floor
New York, New York 10022
(212) 838-3221
(212) 937-3139 (fax)
newcases@cjgraylaw.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca