Bloomberg reports that the underwriters and Overseas directors and officers signed off on misleading financial documents for the March 24, 2010, offering, according to the lawsuit filed November 21st in New York state court in Manhattan.
Overseas, the largest U.S. tanker operator, sought bankruptcy protection after saying October 22nd 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 $300m 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%.
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image: © Steve Punter