COLCHESTER, Conn., Dec. 28, 2006 (PRIME NEWSWIRE) -- On December 28, 2006, Scott+Scott, LLP, filed a class action against TOP Tankers, Inc. ("TOP Tankers" or the "Company") (Nasdaq:TOPT) and certain officers in the U.S. District Court for the Southern District of New York. The action is on behalf of TOP Tankers securities purchasers during the period November 2, 2004, through November 28, 2006, inclusive (the "Class Period"), for violations of the Securities Exchange Act of 1934. The complaint alleges that defendants made false and misleading statements and material omissions regarding the Company's financial statements. As a result, the price of the Company's securities was inflated during the Class Period, thereby harming investors.
If you purchased TOP Tankers securities during the Class Period and wish to serve as a lead plaintiff in the action, you must move the Court no later than February 9, 2007. Any purported class member may move the Court to serve as lead plaintiff through counsel of its choice, or may choose to do nothing and remain an absent class member. If you wish to discuss this action or have questions concerning this notice or your rights, please contact Scott+Scott (scottlaw@scott-scott.com, 800/404-7770, 860/537-5537) or visit the Scott+Scott website, www.scott-scott.com, for more information. There is no cost or fee to you.
The complaint alleges that throughout the Class Period, Defendants presented TOP Tankers as a crude oil shipping company experiencing rapid growth and expansion by using a unique structured growth model predicated upon sales and "leaseback" transactions. These statements, however, were false and misleading. In June, 2006, the Company announced that the Securities and Exchange Commission had opened an inquiry into the Company's complex "leaseback" deals involving 13 of the Company's vessels. Finally, on November 29, 2006, TOP Tankers revealed that the Company's auditor Ernst & Young had resigned as a result of a continuing dispute regarding the accounting treatment of certain aspects of the Company's leaseback deals. As a result, the Company announced that it would need to restate its interim unaudited financial statements for the first and second quarters of 2006, in accordance with E&Y's later recommendations, reducing net income per share by up to $0.02 for the first quarter of 2006 and up to a $0.09 per share for the second quarter of 2006. Following this shocking news, TOP Tankers' stock price fell $0.82 or 13.9%, closing on November 29, 2006, at $5.04 per share, a loss in market capitalization of nearly 58% from its adjusted Class Period high of $12.12 per share on November 26, 2005.
The plaintiff is represented by Scott+Scott, a firm with significant experience in prosecuting investor class actions. The firm dedicates itself to client communication and satisfaction and currently is litigating major securities, antitrust and employee retirement plan actions throughout the United States. The firm represents pension funds, charities, foundations, individuals and other entities worldwide.
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca/