NEW YORK, March 7, 2008 (PRIME NEWSWIRE) -- The Brualdi Law Firm P.C. announces that a class action lawsuit has been commenced in the United States District Court for the Eastern District of Louisiana on behalf of purchasers of the common stock of Superior Offshore International, Inc. ("Superior Offshore" or the "Company") (Nasdaq:DEEP) in connection with the Company's initial public offering on or about April 20, 2007, or who purchased shares thereafter in the open market through January 9, 2008 (the "Class Period").
No class has yet been certified in the above action. If you are a member of the proposed Class, you may, on or before April 28, 2008, ask the Court to allow you to serve as lead plaintiff for the proposed Class. To serve as a lead plaintiff, you must satisfy certain legal requirements. In making your decision, you should take into account that those with large financial losses resulting from the alleged federal securities law violations are given preference in being appointed lead plaintiff.
To be a member of the class you need not take any action at this time, and you may retain counsel of your choice. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Tali Leger, Director of Shareholder Relations at The Brualdi Law Firm P.C., 29 Broadway, Suite 2400, New York, New York 10006, by telephone toll free at (877) 495-1187 or (212) 952-0602, by email to tleger@brualdilawfirm.com or visit our website at http://www.brualdilawfirm.com/
The Complaint charges Superior Offshore and certain of its officers and directors with violations of the Securities Act of 1933. Superior Offshore is a provider of subsea construction and commercial diving services to the offshore oil and gas industry, serving operators internationally and domestically in the outer continental shelf of the U.S. Gulf of Mexico. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that at the time of the issuance of the Registration Statement, the Company knew that its Gulf of Mexico operations were not able to meet goals and projections, which would adversely affect the Company for the foreseeable future; (2) that at the time of the Registration Statement that it would have to move into untested markets due to the decline in its Gulf of Mexico operations; (3) that it would have significant liquidity and debt issues even after the completion of the IPO; (4) that the Company lacked adequate internal and financial controls; and (5) that, as a result of the foregoing, the Company's Registration Statement was false and misleading at all relevant times.
Beginning in August 2007, the Company began what would become a trend of shocking investors with press releases and revelations. The Company slowly released news indicating that it was not operating according to plan, was changing its core business to untested markets (such as deep water and international), and was having liquidity problems despite the large cash influx from the IPO. The Company released the news little by little over the ensuing months, shocking and angering investors who had relied upon the Company's statements at the time of the IPO. In response to these reports, shares of the Company's stock steadily declined, finally falling to $3.02 on January 22, 2008. This closing price represented a cumulative loss of $11.98, or over 79 percent, of the value of the Company's shares at the time of its IPO just months prior.