Wolf Haldenstein Adler Freeman & Herz LLP Commences Class Action Lawsuit on Behalf of Investors in Scottish Re Group Ltd. Common Stock

Aug 14, 2006, 01:00 ET from Wolf Haldenstein Adler Freeman & Herz LLP

    NEW YORK, Aug. 14 /PRNewswire/ -- Wolf Haldenstein Adler Freeman & Herz
 LLP filed today a class action lawsuit in the United States District Court,
 Southern District of New York, on behalf of all persons who purchased the
 common stock of Scottish Re Group Ltd. ("Scottish Re" or the "Company")
 (NYSE:   SCT) between February 17, 2005 and July 28, 2006, inclusive (the
 "Class Period"), against defendants Scottish Re, and certain of its
 officers and directors, including Glenn S. Schafer, Scott E. Willkomm, Paul
 Goldean, Elizabeth A. Murphy, Dean E. Miller and Seth Vance, alleging
 violations under the Securities Exchange Act of 1934, 15 U.S.C. Section
 78(i)(b), 78(t) and 78t-1(a) and Rule 10b-5, promulgated thereunder, 17
 C.F.R. Section 240.10b-5 (the "Class"). Mr. Willkomm resigned as CEO on
 July 31, 2006.
     The Complaint alleges that throughout the Class Period, Defendants made
 false and misleading statements and omissions concerning Scottish Re's
 financial health and business prospects. Defendants also engaged in a
 concerted scheme to cover up serious operational and financial problems. In
 February 2006, the Company reported strong earnings for the 2005 fourth
 quarter, and stated that this positive momentum would continue going
 forward. In early May 2006, Scottish Re announced that it had refinanced,
 at favorable rates, all of its regulatory reserves for the business
 acquired in its acquisition of ING Re, Scottish Re's reinsurance business.
 The Company then reported reduced earnings for the first quarter of 2006,
 but dismissed it as temporary, and certainly not a cause for major concern.
     However, on July 31, 2006, before the market opened, Defendants shocked
 investors with news that: (1) the Company's CEO, Defendant Scott Willkomm,
 had resigned his position; (2) that for the second quarter ended June 30,
 2006, contrary to the Company's earlier positive guidance, Scottish Re
 expected to report a net operating loss of an astounding $130 million, of
 which $112 million was due to the valuation of allowances on deferred tax
 assets; (3) that the Company would suspend its ordinary share dividend; (4)
 that the Company had engaged Goldman Sachs and Bear Stearns to assist
 Scottish Re with evaluating strategic alternatives and potential sources of
 capital; and (5) that results for the remainder of the year would be
 negatively affected.
     On this news the Company's share prices plummeted from $16.00 to $3.99,
 a 75% decline, on unusually heavy trading volume.
     As a result of the dissemination of the false and misleading statements
 set forth above, the market price of Scottish Re common stock was
 artificially inflated during the Class Period. In ignorance of the false
 and misleading nature of the statements described above, and the deceptive
 and manipulative devices and contrivances employed by said defendants,
 plaintiffs and the other members of the Class relied, to their detriment,
 on the integrity of the market price of the stock in purchasing Scottish Re
 common stock. Had plaintiffs and the other members of the Class known the
 truth, they would not have purchased said shares, or would not have
 purchased them at the inflated prices that were paid.
     The case name is styled Hickock v. Scottish Re Group Ltd., et al. A
 copy of the complaint filed in this action is available from the Court, or
 can be viewed on the Wolf Haldenstein Adler Freeman & Herz LLP website at
     If you purchased Scottish Re common stock during the Class Period, you
 may request that the Court appoint you as lead plaintiff by October 2,
     A lead plaintiff is a representative party that acts 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. Under certain circumstances, one or
 more class members may together serve as "lead plaintiff." Your ability to
 share in any recovery is not, however, affected by the decision whether or
 not to serve as a lead plaintiff. You may retain Wolf Haldenstein, or other
 counsel of your choice, to serve as your counsel in this action.
     Wolf Haldenstein has extensive experience in the prosecution of
 securities class actions and derivative litigation in state and federal
 trial and appellate courts across the country. The firm has approximately
 60 attorneys in various practice areas; and offices in Chicago, New York
 City, San Diego, Washington D.C., and West Palm Beach. The reputation and
 expertise of this firm in shareholder and other class litigation has been
 repeatedly recognized by the courts, which have appointed it to major
 positions in complex securities multi-district and consolidated litigation.
     If you wish to discuss this action or have any questions, please
 contact Wolf Haldenstein Adler Freeman & Herz LLP at 270 Madison Avenue,
 New York, New York 10016, by telephone at (800) 575-0735 (Gregory M.
 Nespole, Esq., Paulette S. Fox, Esq., or Derek Behnke), via e-mail at
 classmember@whafh.com or visit our website at http://www.whafh.com. All
 e-mail correspondence should make reference to Scottish Re.

SOURCE Wolf Haldenstein Adler Freeman & Herz LLP