NEW YORK, Dec. 20, 2006 (PRIME NEWSWIRE) -- Notice is hereby given that a class action lawsuit was commenced in the United States District Court for the Southern District of New York on behalf of all purchasers of TOP Tankers, Inc. ("TOP Tankers" or the "Company") (Nasdaq:TOPT) securities between June 28, 2005 and November 28, 2006, inclusive (the "Class Period"). A copy of the complaint filed in this action can be viewed on the firm's website at www.faruqilaw.com
TOP Tankers and certain of its officers and directors are charged with issuing a series of materially false and misleading statements in violation of Section 10(b) and 20(a) of the Exchange Act and Rule 10b-5 promulgated thereunder. On November 29, 2006, TOP Tankers shocked investors when it announced that Ernst & Young, LLP, the Company's independent auditors, had resigned over a disagreement related to its accounting for certain sale and lease back transactions, and that it would be forced to restate its financial results for the entire half of 2006. The news caused shares of TOP Tankers to fall almost 15% in the single trading day, to close just above $5.00 per share.
The Complaint alleges that TOP Tankers materially misrepresented and failed to disclose conditions that adversely affected the Company throughout the Class Period in order to: (1) artificially inflate the price of Company shares by deceiving shareholders concerning TOP Tankers' financial results and business prospects; (2) register for sale with the SEC, millions of shares of TOP Tankers stock, and to provide shareholders with a massive $7.50 dividend per share -- almost $40 million of which was paid to defendants and their families; and (3) permit Kingdom Holdings, an entity owned by the family of defendant Evangelos Pistiolis, to liquidate almost 900,000 Company shares during the Class Period.
Plaintiff seeks to recover damages on behalf of himself and all other individual and institutional investors who purchased or otherwise acquired TOP Tankers securities between June 28, 2005 through November 28, 2006, excluding defendants and their affiliates. Plaintiff is represented by Faruqi & Faruqi, LLP, a law firm with extensive experience in prosecuting class actions, and significant expertise in actions involving corporate fraud.
If you wish to obtain information concerning joining this action you can do so under the "Join Lawsuit" section of our website at: www.faruqilaw.com
If you purchased TOP Tankers securities during the Class Period, you may, not later than February 9, 2007, move the court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action, or have any questions concerning this notice or your rights or interests, please contact:
Anthony Vozzolo, Esq. Faruqi & Faruqi, LLP 320 East 39th Street New York, NY 10016 Telephone: (877) 247-4292 or (212) 983-9330 E-mail: Avozzolo@faruqilaw.com
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca