HARTFORD, Conn., Dec. 18, 2006 (PRIME NEWSWIRE) -- The law firm of Schatz Nobel Izard, 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 or otherwise acquired the common stock of TOP Tankers, Inc. ("TOP Tankers" or the "Company") (Nasdaq:TOPT) between June 28, 2005 and November 28, 2006, inclusive, (the "Class Period").
The Complaint alleges that TOP Tankers, an international provider of worldwide seaborne crude oil and petroleum products transportation services, and certain of its officers and directors violated federal securities laws. Specifically, the Complaint alleges that defendants failed to disclose and misrepresented the following material adverse facts: (i) the Company improperly accounted for certain sale and leaseback transactions involving ships during the Class Period; (ii) TOP Tankers recognized certain gains from these transactions before receipt of payment; (iii) the Company's financial statements were in violation of Generally Accepted Accounting Principles; (iv)TOP Tankers lacked adequate internal controls; and (v) as a consequence of the foregoing, the Company's financial results were materially overstated at all relevant times.
On November 29, 2006, before the market opened, TOP Tankers disclosed that Ernst & Young LLP, had resigned as the Company's independent auditors over a disagreement between the Company and Ernst & Young concerning the accounting treatment of certain aspects of the sale and leaseback of thirteen vessels that closed in March and April 2006. The Company also reported that it would restate its interim unaudited financial statements for the first and second quarters of 2006. On this news, TOP Tankers' stock dropped 14% per share to close at $5.04 on November 29, 2006.
If you are a member of the class, you may, no later than February 9, 2007, 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 Izard, P.C. 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 Izard, P.C. toll-free at (800) 797-5499, or by e-mail at sn06106@aol.com, or visit our website: www.snlaw.net.