Another day, another law suit. Citigroup, Morgan Stanley and HSBC Securities were among
underwriters sued by an investor in a $300 million debt offering by Overseas
Shipholding Group Inc., which filed for bankruptcy Nov. 14, Bloomberg tells us.
The underwriters and Overseas directors and officers signed
off on misleading financial documents for the March 24, 2010, offering,
according to the lawsuit filed Nov. 21 in New York state court in Manhattan.
Overseas, the largest U.S. tanker operator, sought
bankruptcy protection after saying Oct. 22 that its financial statements from
2009 through the first two quarters of 2012 contained inaccuracies. Before the
announcement, the New York- based company posted 13 straight quarters of net
losses as shipping rates fell. Documents provided to investors in the $300
million offering contained inaccuracies from previous financial filings,
according to the complaint, filed by Paul Otto Koether IRA Rollover on behalf
of all investors in the debt. The investor said it is seeking to recoup losses
after prices for the notes fell about 58 percent….
More? Go to http://www.bloomberg.com/news/2012-11-23/citigroup-morgan-stanley-sued-over-overseas-shipholding.html
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