Rigrodsky & Long, P.A. Announces A Securities Fraud Class Action Lawsuit Has Been Filed Against Overseas Shipholding Group, Inc.
WILMINGTON, Del.--(BUSINESS WIRE)-- Rigrodsky & Long, P.A. announces that a complaint has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities that purchased the securities of Overseas Shipholding Group, Inc. ("OSG" or the "Company") (NYSE: OSG) between May 4, 2009 and October 19, 2012, inclusive, (the "Class Period"), alleging violations of the Securities Exchange Act of 1934 against the Company, certain of its officers and directors (the "Complaint").
If you purchased shares of OSG during the Class Period and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Timothy J. MacFall, Esquire or Peter Allocco of Rigrodsky & Long, P.A., 825 East Gate Boulevard, Suite 300, Garden City, NY at (888) 969-4242, by e-mail to email@example.com, or at: http://www.rigrodskylong.com/investigations/overseas-shipholding-group-inc-osg.
OSG, a Delaware corporation headquartered in New York, New York, is one of the world's leading tanker companies engaged primarily in the ocean transportation of crude oil and petroleum products. The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements regarding the Company's business operations, financial condition and prospects. Specifically, the Complaint alleges that the defendants failed to disclose : (1) that the Company improperly accounted for certain tax liabilities arising from the fact that it is domiciled in the United States and has substantial international operations, and relating to the interpretation of certain provisions contained in its loan agreements; (2) that the Company lacked adequate internal and financial controls; and (3) that, as a result of the above, the Company's financial statements were materially false and misleading at all relevant times. As a result of defendants' false and misleading statements, the Company's stock traded at artificially inflated prices during the Class Period.
According to the Complaint, on October 3, 2012, the Company disclosed the resignation of a Board member due to "a disagreement with the Board as to the process the Board is taking in reviewing a tax issue." Further, on October 16, 2012, it was reported in the media that the Company might be facing a liquidity squeeze and its Chief Executive Officer confirmed that the Company had hired a financial adviser and was in talks with its lenders. On this news, shares in OSG declined from a close of $5.17 per share on October 15, 2012 to $3.76 per share on October 16, 2012, on volume of over 8 million shares.
Then in a press release dated October 22, 2012, OSG disclosed that it was reviewing a tax issue arising from it being domiciled in the United States and having substantial international operations, and relating to the interpretation of provisions in its loan agreements. Moreover, the Company's Audit Committee concluded that the financial statements for at least the three years ended December 31, 2011 and associated interim period, and for the quarters ended March 31 and June 20, 2012, should no longer be relied upon and is evaluating if it will need to restate for those periods. The Company further disclosed that it is negotiating with creditors and is evaluating its strategic options including filing for bankruptcy. On this news, share in OSG declined over 62%, from a close of $3.25 per share on October 19, 2012 to $1.23 per share on October 22, 2012, on volume of over 16 million shares.
If you wish to serve as lead plaintiff, you must move the Court no later than December 24, 2012. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the proposed 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.
While Rigrodsky & Long, P.A. did not file the Complaint in this matter, the firm, with offices in Wilmington, Delaware and Garden City, New York, regularly litigates securities class, derivative and direct actions, shareholder rights litigation and corporate governance litigation, including claims for breach of fiduciary duty and proxy violations in the Delaware Court of Chancery and in state and federal courts throughout the United States.
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KEYWORDS: United States North America Delaware New York
The article Rigrodsky & Long, P.A. Announces A Securities Fraud Class Action Lawsuit Has Been Filed Against Overseas Shipholding Group, Inc. originally appeared on Fool.com.
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