Case Page

 

Case Status:    SETTLED
On or around 02/10/2009 (Date of order of final judgment)

Filing Date: July 12, 2006

On February 10, 2009, the judge entered a Final Order approving the settlement and dismissing claims against defendants. In a separate order lead counsel were awarded attorneys' fees of 25% of the Settlement Fund, plus payment of litigation expenses in the amount of $264,973.35.

Defendants filed separate motions for dismissal, beginning November 2, 2007. The motions were withdrawn September 19, 2008 in light of a pending settlement agreement. A Stipulation of Settlement was filed October 28, 2008, outlining an $8 million deal in exchange for dismissal of all claims.

On June 22, 2007 Judge Sandoval entered an order consolidating three similar actions against Sunterra Corporation. On August 21, 2007 lead plaintiff Employees' Retirement Group filed their consolidated complaint against the defendants alleging that Sunterra and its two top officers violated §10(b) and §20(a) of the 1934 Act and Rule 10b-5.

According to a press release dated July 12, 2006, the complaint charges that Sunterra and certain of its officers and directors violated Sections 10(b) and 20(a) of the Securities and Exchange Act by issuing materially false and misleading financial results for the fiscal years ended December 31, 2002 to September 30, 2005 and the first quarter ended December 31, 2005.

Specifically, the complaint alleges that on or around March 27, 2006 the Company announced that it had terminated Grant Thornton as its independent auditor. On April 10, 2006, Grant Thornton notified the SEC by letter that it disagreed with Sunterra's statements concerning Grant Thornton's termination. Specifically Grant Thornton asserted that an email it had received from a former employee alleging accounting improprieties in Sunterra's European operations was a reportable event, contrary to the representation that Sunterra had made to the SEC on March 27th. On May 2, 2006, the Company terminated its Managing Director of Sunterra Europe.

On May 3, 2006 the Company announced that its financial results for the fiscal years ended December 31, 2002 to September 30, 2005 and the fiscal quarter ended December 31, 2005 contained material inaccuracies and should no longer be relied upon.

The complaint further alleges that on or around June 22, 2006, the Company announced that it had placed its CEO on administrative leave pending the completion of the Company's investigation into the Company's accounting practices and the allegations by the former employee. That same day, the Company announced that its CFO had resigned. Subsequently, on July 6, 2006 the Company's stock was de-listed from the Nasdaq. As a result of these adverse events, the Company's stock has declined nearly 50%.

COMPANY INFORMATION:

Sector: Services
Industry: Real Estate Operations
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: SNRR
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: D. Nevada
DOCKET #: 06-CV-00844
JUDGE: Hon. Brian E. Sandoval
DATE FILED: 07/12/2006
CLASS PERIOD START: 04/15/2003
CLASS PERIOD END: 06/22/2006
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Dyer & Shuman, LLP
    801 E. 17th Avenue, Dyer & Shuman, LLP , CO 80218-1417
    303.861.3003 800.711.6483 · info@dyershuman.com
  2. Federman & Sherwood (Oklahoma City)
    120 North Robinson, Suite 2720, Federman & Sherwood (Oklahoma City), OK 73102
    405-235-1560 · wfederman@aol.com
  3. Howard G. Smith, Attorney at Law
    3070 Bristol Pike, Suite 112, Howard G. Smith, Attorney at Law, PA 19020
    215.638.4847 215.638-4867 ·
  4. Kirby McInerney & Squire LLP
    830 Third Avenue 10th Floor, Kirby McInerney & Squire LLP, NY 10022
    212.317.2300 ·
  5. Lerach Coughlin Stoia Geller Rudman & Robbins LLP (San Diego)
    655 West Broadway, Suite 1900, Lerach Coughlin Stoia Geller Rudman & Robbins LLP (San Diego), CA 92101
    619.231.1058 619.231.7423 ·
  6. Schatz & Nobel, P.C.
    330 Main Street, Schatz & Nobel, P.C., CT 06106
    800.797.5499 860.493.6290 · sn06106@AOL.com
  7. The Rosen Law Firm, P.A. (New York)
    350 Fifth Avenue, Suite 5508, The Rosen Law Firm, P.A. (New York), NY 10118
    212.686.1060 212.202.3827 · lrosen@rosenlegal.com
  8. Wolf Popper, LLP
    845 Third Avenue, Wolf Popper, LLP, NY 10022-6689
    877.370.7703 212.486.2093 · IRRep@wolfpopper.com
  9. Zwerling Schachter & Zwerling LLP
    845 Third Avenue, Zwerling Schachter & Zwerling LLP, NY 10022
    212-223-3900 212-371-5969 · inquiry@zsz.com
No Document Title Filing Date
COURT: D. Nevada
DOCKET #: 06-CV-00844
JUDGE: Hon. Brian E. Sandoval
DATE FILED: 08/21/2007
CLASS PERIOD START: 04/15/2003
CLASS PERIOD END: 06/22/2006
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Lerach Coughlin Stoia Geller Rudman & Robbin (San Francisco)
    100 Pine Street, Suite 2600, Lerach Coughlin Stoia Geller Rudman & Robbin (San Francisco), CA 94111
    415.288.4545 415.288.4534 · info@lerachlaw.com
No Document Title Filing Date
No Document Title Filing Date