Newman Ferrara LLP announces that a class action lawsuit has been filed in the Southern District of New York against Overseas Shipholding Group, Inc. (“OSG”) (NYSE: OSG) and certain of its executive officers and directors, alleging violations of federal securities laws.
Investors who purchased OSG securities between May 4, 2009 and October 19, 2012 (the “Class Period”) may apply with the Court to be appointed Lead Plaintiff no later than December 26, 2012. The Lead Plaintiff will direct the litigation on behalf of the other class members. The Court will select the Lead Plaintiff from among applicants claiming the largest investment losses.
OSG is leading oil tanker company engaged in the transportation of crude oil, petroleum products, and gas worldwide. The Complaint alleges that OSG issued materially false and misleading statements and/or failed to disclose that OSG’s financial statements were materially false and misleading because OSG had: (i) understated certain tax liabilities; (ii) overstated earnings; (iii) understated losses; and (iv) lacked adequate internal and financial controls, thereby making its reported financial results unreliable and in violation of Generally Accepted Accounting Principles.
On October 16, 2012, it was reported that OSG might be facing liquidity problems. On this news, OSG stock declined 34% to $3.40 per share. On October 22, 2012, OSG disclosed that it was reviewing a tax issue related to its international business operations and determined that its financial statements for at least the three years ended December 31, 2011 and for the quarters ended March 31 and June 30, 2012 should no longer be relied upon. On this news, OSG stock declined 62% to a closing price of $1.23 per share on October 22, 2012.Investors who purchased shares of OSG stock during the Class Period are encouraged to contact Newman Ferrara attorney Roy Shimon at email@example.com or call (212) 619-5400 to discuss this lawsuit or the Lead Plaintiff process. Newman Ferrara maintains a multifaceted practice based in New York City with attorneys specializing in complex commercial and multi-party litigation, securities fraud and shareholder litigation, consumer protection, civil rights, and real estate. For more information, please visit the firm website at www.nfllp.com.