Robbins Geller Rudman & Dowd LLP Files Class Action Suit against Overseas Shipholding Group, Inc.
Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/osg/) today announced that a class action has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of Overseas Shipholding Group, Inc. (“OSG” or the “Company”) (NYSE: OSG) common stock during the period between March 1, 2010 and October 19, 2012 (the “Class Period”).
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from October 24, 2012. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Samuel H. Rudman or David A. Rosenfeld of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/osg/. Any member of the putative 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.
The complaint charges OSG and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The Company is one of the largest oil tanker operating companies in the world. OSG is based in New York City and is engaged primarily in the ocean transportation of crude oil and petroleum products.
The complaint alleges that, during the Class Period, defendants issued materially false and misleading statements regarding the Company's operational status and financial projections. Specifically, defendants misrepresented and/or failed to disclose the following adverse facts: (a) that OSG's financial results were materially false and misleading in violation of Generally Accepted Accounting Principles (“GAAP”); (b) that OSG's tax liability was understated in violation of GAAP; (c) that OSG's earnings were overstated and losses were understated in violation of GAAP; and (d) that OSG's internal controls were so poor and inadequate that OSG's reported results were not reliable.
Through a series of partial disclosures in October 2012 that followed the sudden resignation of a member of the OSG Board's Audit Committee in late September 2012, defendants shocked the market by revealing that the Company's financial position and results were not as they had been portrayed throughout the Class Period. Specifically, following the announcement of the Board member's resignation on October 3, 2012, the market learned of a massive funding gap between OSG's expiring credit facility of $1.5 billion (in February 2013), and a $900 million forward start credit facility the Company had obtained. Estimates from the Company and analysts put the funding gap between $100 million to $300 million.
Then, on October 22, 2012, before the opening of trading, defendants revealed that in connection with the Board's review of the tax issue, the Board's Audit Committee concluded that the Company's previously issued financial statements for at least the three years ended December 31, 2011 and associated interim periods, and for the fiscal quarters ended March 31 and June 30, 2012, should no longer be relied upon. On this news, Standard & Poor's Ratings Service lowered its credit rating on OSG to triple-C-minus, nine steps into junk territory, from triple-C-plus, while OSG's stock price declined more than 62%, closing at $1.23 per share, down $2.02 from the October 19, 2012 closing price of $3.25 per share, on unusually high trading of more than twenty times the average daily volume during the Class Period.
Plaintiff seeks to recover damages on behalf of all purchasers of OSG common stock during the Class Period (the “Class”). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Robbins Geller represents U.S. and international institutional investors in contingency-based securities and corporate litigation. With nearly 200 lawyers in nine offices, the firm represents hundreds of public and multi-employer pension funds with combined assets under management in excess of $2 trillion. The firm has obtained many of the largest recoveries and has been ranked number one in the number of shareholder class action recoveries in MSCI's Top SCAS 50 every year since 2003. According to Cornerstone Research, the firm's recoveries have averaged 35% above the median for all firms over the past seven years (2005-2011). Please visit http://www.rgrdlaw.com for more information.
Robbins Geller Rudman & Dowd LLP
Samuel H. Rudman, 800-449-4900
David A. Rosenfeld