NEW YORK, Aug. 24, 2006 (PRIMEZONE) -- The law firm of Kirby McInerney & Squire, LLP announces that it has commenced a class action lawsuit in the United States District Court for the Southern District of New York on behalf of all purchasers of Scottish Re Group Limited's ("Scottish Re" or the "Company") (NYSE:SCT), (NYSE:SCT-PB) 7.25% Non-Cumulative Perpetual Preferred Shares (the "Perpetual Preferred Shares") between July 5, 2005 and July 28, 2006, inclusive, (the "Class Period"). The action names as defendants the Company, along with certain senior officers and directors of the Company, and certain underwriters on the offering of the Perpetual Preferred Shares.
Please visit our website, which offers summary and detailed information concerning the suit at http://www.kmslaw.com or contact us by phone at (888) 529-4787 or by email at info.newcases@kmslaw.com for more information.
If you purchased Scottish Re Perpetual Preferred Shares during the Class Period, and wish to serve as lead plaintiff, you must move the Court no later than October 2, 2006. Any member of the purported class may move the Court to serve as lead plaintiffs through counsel of their choice, or may choose to do nothing and remain an absent class member. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Francisco Loya of Kirby McInerney & Squire, LLP at 888-529-4787, or via email at floya@kmslaw.com.
The complaint alleges that Scottish Re, certain of its officers and directors, and certain underwriters on the offering violated federal securities laws by making false and misleading statements and omissions concerning Scottish Re's financial health and business prospects in the Registration Statement and Prospectus and in other filings and public statements. In February 2006, the Company reported strong earnings for the 4th 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.
However, on July 31, 2006, the defendants surprised the market with news that CEO Scott Willkomm had resigned, and that for the second quarter, the Company would report a loss of $130 million, and that results for the remainder of the year would be negatively affected. On this news the price of the Perpetual Preferred Shares plummeted from $25.01 to $9.00, a 64% decline.
Plaintiff is represented by Kirby McInerney & Squire, LLP. Kirby McInerney & Squire, LLP has specialized in complex litigation, including securities class actions, for several decades. The firm has repeatedly demonstrated its expertise in this field, and has been recognized by various courts which have appointed the firm to major positions in consolidated and multi-district litigation. The firm's efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling hundreds of millions of dollars, and the firm's achievements and quality of service have been chronicled in numerous published decisions. More information about the firm, class actions in general, or about the role of the lead plaintiffs in a securities class action can be obtained through Kirby McInerney & Squire, LLP's website at http://www.kmslaw.com.