MURRAY, FRANK & SAILER LLP ANNOUNCES THE FILING OF A SHAREHOLDER CLASS ACTION AGAINST SEA CONTAINERS LTD. - SCR-A
New York, NY April 6, 2006 - Murray, Frank & Sailer LLP announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of all securities purchasers of Sea Containers Ltd. (NYSE: SCR-A) ("SCL" or the "Company") between March 15, 2004 and March 23, 2006, inclusive (the "Class Period"). The defendants in the case are SCL, James Sherwood (former CEO, President and Chair); Robert Mackenzie (CEO), Daniel J. O'Sullivan (former CFO) and Ian C. Durant (CFO).
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The Complaint alleges that throughout the Class Period SCL disseminated press releases and SEC filings that were materially false and misleading because, among other things: (a) the Company had overvalued long-lived assets related to its ferry and container businesses by hundreds of millions of dollars; (b) the Company's reported earnings were materially overstated; (c) the Company's internal controls and procedures were deficient and its financial reports inherently unreliable; (d) the Company's reported financial results deceived investors regarding the Company's true historical results and prospects; and (e) the Company had overstated its gain on the sale of its interest in Orient-Express Hotels Ltd.
The truth emerged on March 24, 2006, when SCL disclosed that it was completely quitting the ferry business, taking a $500 million charge, and was in talks to amend some of its loan agreements. The Company further disclosed that it would restate its earnings for 2005 and delay filing its annual reports with the SEC until April to allow time to finalize bank negotiations and outstanding accounting issues. On this news the Company's share price dropped by 37.9 %, from the March 24, 2006 per share opening price of $12 to a closing price of $7.45. During the Class Period, the Company issued and sold, at artificially inflated prices, $103,000,000 aggregate principal amount of unsecured 101/2% senior notes due 2012 in an underwritten public offering.
Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.
If you purchased or otherwise acquired SCL securities on any world exchange between March 15, 2004 and March 23, 2006 and sustained damages, you may, no later than May 30, 2006, move the Court to serve as lead plaintiff. Shareholders outside the United States may also join the action, regardless of which exchange was used to purchase the securities. To serve as lead plaintiff, however, you must meet certain legal requirements. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff’s counsel Eric J. Belfi or Bradley P. Dyer of Murray, Frank & Sailer LLP.
Murray, Frank & Sailer LLP
Eric J. Belfi
Bradley P. Dyer
Fax: (212) 682-1892
Email: [email protected]