HARTFORD, Conn., Aug. 3, 2006 (PRIMEZONE) -- The law firm of Schatz & Nobel, P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Southern District of New York on behalf of all persons who purchased the publicly traded securities of Scottish Re Group Ltd. ("Scottish Re" or the "Company") (NYSE:SCT) between December 16, 2005 and July 28, 2006, inclusive, (the "Class Period").
The Complaint alleges that defendants violated federal securities laws by issuing a series of materially false statements. Specifically, defendants made false and misleading statements concerning Scottish Re's financial health and business prospects, and covered up serious operational and financial problems. In February 2006, Scottish Re 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 75%, from $16.00 to $3.99.
If you are a member of the class, you may, no later than October 2, 2006, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz & Nobel has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz & Nobel toll-free at (800) 797-5499, or by e-mail at sn06106@aol.com, or visit our website: www.snlaw.net.