NEW YORK, April 24, 2006 (PRIMEZONE) -- A shareholder lawsuit against Sea Containers Ltd. ("SCL" or the "Company") (NYSE:SCR.A) is pending in federal court here, Berman DeValerio Pease Tabacco Burt & Pucillo announced today.
Berman DeValerio (www.bermanesq.com) filed the class action April 12 in the U.S. District Court for the Southern District of New York. The complaint seeks damages for violations of federal securities laws on behalf of all investors who acquired SCR securities from March 15, 2004 through and including March 23, 2006 (the "Class Period").
To receive a copy of the complaint, you may contact the court, call the firm at (800) 516-9926 or go to http://www.bermanesq.com/pdf/SeaContainers-Cplt.pdf.
The lawsuit claims that the Company and three individual defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 ("Exchange Act"), 15 U.S.C. Sections 78j(b) and 78t, and SEC Rule 10b-5, 17 C.F.R. Section 240.10b-5, promulgated thereunder.
Sea Containers, Ltd. provides passenger and freight transport and leases marine containers.
According to the plaintiff's complaint, the defendants issued materially false and misleading statements concerning SCL's financial results that inflated the Company's stock price during the Class Period. In particular, the defendants: (a) failed to timely record $500 million in impairments to the value of certain assets in SCL's ferry and container business segments; (b) overstated the Company's earnings during the Class Period; and (c) overstated the gain on the sale of SCL's equity interest in Orient Express Hotels Ltd.
The truth emerged March 24, 2006, when SCL disclosed that it would shutter its ferry business, record a $500 million impairment of certain assets and restate its 2005 interim financial results. SCL further disclosed that the substantial write-down of its assets placed the Company in violation of its debt covenants with certain lenders. Lastly, SCL announced it would restate its previously reported 2005 financial results.
The market reacted swiftly, sending the price of SCL's common stock down by more than 38%, from a closing price of $12.06 per share on March 23, 2006, to $7.45 per share at the close of trading on March 24, 2006.
If you acquired SCL securities from March 15, 2004 through and including March 23, 2006, you may wish to contact the following attorneys at Berman DeValerio Pease Tabacco Burt & Pucillo to discuss your rights and interests.
Jeffrey C. Block, Esq. Joseph C. Merschman, Esq. One Liberty Square Boston, MA 02109 (800) 516-9926 law@bermanesq.com
If you wish to apply to be lead plaintiff in this action, a motion on your behalf must be filed with the court no later than May 30, 2006. You may contact the attorneys at Berman DeValerio to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action, or you may submit information online at http://www.bermanesq.com/Securities/Signup1.asp?caseid=569. Please note, you may also retain counsel of your choice and need not take any action at this time to be a class member.
Berman DeValerio Pease Tabacco Burt & Pucillo prosecutes class actions nationwide on behalf of institutions and individuals, chiefly victims of securities fraud, antitrust law violations, and consumer fraud. The firm has 34 lawyers in Boston, San Francisco and West Palm Beach.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca