Cases

Sea Containers Ltd. Accounting Fraud Class Action

Gardy & Notis, LLP has filed a lawsuit for purchasers of Sea Containers Ltd. (NYSE: SCR-A) (NYSE: SCR-B) stock between August 27, 2002 to March 15, 2006, charging that Sea Containers and its top executive officers engaged in accounting fraud and violated the federal securities laws by: (1) overvaluing long-lived assets related to its ferry and container businesses by hundreds of millions of dollars; (2) reporting earnings were materially overstated; (3) maintaining deficient internal controls and procedures that produced inherently unreliable financial reports; (4) reporting financial results that falsely represented Sea Container true results of operations and prospects; and (5) overstating its gain on the sale of its interest in Orient-Express Hotels Ltd.

On March 24, 2006, Sea Containers disclosed that it was completely quitting the ferry business, taking a $500 million charge, was in talks to amend some of its loan agreements, and would restate its earnings for 2005 and delay filing its annual reports with the SEC until April to allow time to resolve outstanding accounting issues. The price of Sea Containers stock dropped by 37.9 % in reaction to the news.

The case is Hewitt v. Sea Containers Ltd., No. 06-CV-2776, in the United States District Court for the Southern District of New York.

For more information regarding the lawsuit or to obtain a copy of the complaint or any Court filings, please contact us.