Scottish Re Group Limited (OTC: SKRRF) Investor Securities Class Action Lawsuit 08/02/2006

If you purchased shares of Scottish Re Group Limited (OTC: SKRRF), you might have certain options and should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Scottish Re Group Limited
Case Name: 
Scottish Re Group Limited Shareholder Class Action Lawsuit 08/02/2006
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Approved
Affected Securities
OTC: SKRRF
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
12/04/2006
Class Period Begin: 
02/17/2005
Class Period End: 
02/20/2007
Court of Filing: 
U.S. District Court for the Southern District of New York
Date Settled: 
12/11/2008
Settlement Amount: 
$37,500,000
Deadline to Participate in Settlement: 
01/24/2009
Summary: 

July 29, 2010 - The court ordered the authorization of the distribution of the net settlement fund.

December 11, 2008 - The court approved the settlement, entered the orders approving the plan of allocation, the motion for attorneys’ fees and expenses, and dismissed the action with prejudice.

September 8, 2008 - The court preliminarily approved the settlement.

August 21, 2008 - Parties filed a stipulation of settlement.

June 16, 2008 - Parties filed a stipulation agreeing to the dismissal of an individual defendant without prejudice.

November 9, 2007 - The court denied an additional defendant's motion to dismiss.

November 2, 2007 - The court denied in part and granted in part some of the defendants' motions to dismiss.

March 14, 2007 - Additional defendants filed a motion to dismiss.

March 7, 2007 - The defendants filed a motion to dismiss.

December 4, 2006 - The lead plaintiff filed an amended complaint.

October 20, 2006 - All cases were consolidated.

October 12, 2006 - The lead plaintiff and lead counsel were appointed.

October 2, 2006 - Lead plaintiff motions were filed.

August 23, 2006 - An additional investor filed a complaint in the U.S. District Court for the Southern District of New York on behalf of investors who purchased Scottish Re Group Limited (OTC: SKRRF) common shares between July 6, 2005 and July 28, 2006.

August 14, 2006 - Another investor filed a complaint in the U.S. District Court for the Southern District of New York on behalf of investors who purchased Scottish Re Group Limited (OTC: SKRRF) common shares between February 17, 2005 and July 28, 2006.

August 2, 2006 - An investor in shares of Scottish Re Group Limited (OTC: SKRRF) filed a lawsuit in the U.S. District Court for the Southern District of New York against Scottish Re Group Limited over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between December 16, 2005 and July 28, 2006.

The complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between December 16, 2005 through July 28, 2006 thereby artificially inflating the price of Scottish Re Group Limited securities. The complaint alleges that Scottish Re Group Limited and of its certain officers and directors violated the federal securities laws by making false and misleading statements and omissions concerning Scottish Re Group Limited's financial health and business prospects, and covered up serious operational and financial problems. In February 2006, Scottish Re Group Limited reported robust earnings for the 4th quarter of 2005, announcing that this positive momentum would continue going forward. In early May 2006 Scottish Re Group Limited announced that it had refinanced, at favorable rates, all of its regulatory reserves for the business acquired in its acquisition of ING Re's reinsurance business. While Scottish Re Group Limited also reported reduced earnings for the first quarter of 2006, this was dismissed as temporary, and not a cause for concern.

Then on July 28, 2006, the defendants shocked the market by announcing that CEO Scott Willkomm had resigned, and that for the second quarter, Scottish Re Group Limited would report a huge loss of $ 130 million, and that results for the remainder of the year would be negatively affected. On this news Scottish Re Group Limited's share prices declined an astounding 75%, from $16.00 to $3.99, wiping out millions in shareholder value.