Schatz & Nobel law firm has announced that a lawsuit seeking class action status has been filed in the United States District Court for the Southern District of New York on behalf of all persons who purchased the publicly traded securities of Scottish Re Group Ltd between December 16th 2005 and July 28th 2006, inclusive, (the "Class Period").

The Complaint alleges that defendants violated federal securities laws by issuing a series of materially false statements. Specifically, defendants made false and misleading statements concerning Scottish Re's financial health and business prospects and covered up serious operational and financial problems. In February 2006, Scottish Re reported robust earnings for the fourth quarter of 2005, announcing that this positive momentum would continue going forward. In early May 2006, the Company announced that it had refinanced, at favourable rates, all of its regulatory reserves for the business acquired in its acquisition of ING Re's reinsurance business. While the Company also reported reduced earnings for the first quarter of 2006, this was dismissed as temporary and not a cause for concern.

However, on July 28th 2006, the company shocked the market by announcing that CEO Scott Willkomm had resigned, and that for the second quarter, the Company would report a huge loss of $130 million, and that results for the remainder of the year would be negatively affected. Following this news, the Company's share prices declined 75 percent, from $16.00 to $3.99.