At least a dozen law firms have announced they have launched investigations into or filed lawsuits against Overseas Shipholding Group (OSG) in the wake of a plunge in OSG's shares following an announcement on Monday by the tanker company that its financial statements for the past three and a half years "should no longer be relied upon."
The company said it's evaluating "strategic options, including the potential voluntary filing of a petition for relief to reorganize under Chapter 11 of the Bankruptcy Code."
A class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of investors who bought shares of OSG between May 4, 2009, and Oct. 19, 2012. The class action seeks to recover damages against the company and certain officers and directors as a result of alleged violations of the federal securities laws, said law firm Gainey & McKenna
in a press release.
Other law firms that have announced lawsuits or investigations include Levi & Korsinsky; the Law Offices of Todd M. Garber; Block & Leviton; Wolf Haldenstein Adler Freeman & Herz; Rigrodsky & Long; Pomerantz Law Firm; Abraham, Fruchter & Twersky; Bronstein, Gewirtz & Grossman; Law Offices of Howard G. Smith; Rosen Law Firm; and Glancy Binkow & Goldberg.
OSG shares, which closed last Friday at $3.26, have traded as high as $15.16 in the past year, but fell to a low of $1.02 this week. However, the share price rebounded to $1.32 on Thursday. - Chris Dupin