MILWAUKEE, Jan. 5, 2007 (PRIME NEWSWIRE) -- Ademi & O'Reilly announced that it has filed a class action in the United States District Court for the Southern District of New York on behalf of purchasers of TOP Tankers Inc. ("TOP Tankers") (Nasdaq:TOPT) common stock during the period between November 2, 2004 and November 28, 2006, inclusive (the "Class Period").
If you wish to serve as lead plaintiff, you must move the Court no later than February 9, 2007. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiffs' counsel, Guri Ademi at 866/264-3995, or via e-mail at gademi@ademilaw.com. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.ademilaw.com. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges TOP Tankers and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The complaint alleges that TOP Tankers went public in 2004 in a 12 million share offering purportedly to raise money to purchase additional vessels. During the Class Period, defendants made false statements about the Company's finances and business, which concealed important information about the Company's acquisitions. As a result of defendants' false statements during the Class Period, TOP Tankers stock increased to as high as $24.14 per share. In June 2006, the Company announced a Securities and Exchange Commission inquiry into its acquisitions going back to 2004 and the sale and leaseback of 13 vessels, which the Company announced in March 2006. Then, on November 29, 2006, TOP Tankers announced that its independent auditor, Ernst & Young, had resigned because of disagreements over the Company's accounting treatment of certain aspects of the sale and leaseback of 13 vessels that closed in March and April 2006. After this news, TOP Tankers' stock price dropped to as low as $4.85 per share before closing at $5.04 per share, some 80% below the Class Period high of $24.14 per share.
According to the complaint, the true facts, which were known by each of the defendants but concealed from the investing public during the Class Period, were as follows: (a) TOP Tankers was improperly accounting for the sale and leaseback of vessels, including for 13 vessels that closed in March and April 2006; (b) TOP Tankers' acquisitions had been manipulated to benefit insiders; (c) TOP Tankers had inadequate and deficient internal controls and systems; and (d) as a result of the above, TOP Tankers' financial statements were grossly inflated and materially misleading.
Plaintiffs seek to recover damages on behalf of all purchasers of TOP Tankers common stock during the Class Period. The plaintiffs are represented by Ademi & O'Reilly, LLP, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca.