NEW YORK, Nov. 7, 2008 (GLOBE NEWSWIRE) -- Levi & Korsinsky ("L&K") announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of all persons who purchased Britannia Bulk Holdings, Inc. ("Britannia" or the "Company") (Pink Sheets:BBLKF) common stock pursuant to, or traceable to the Company's Registration Statement and Prospectus issued in connection with the Company's June 17, 2008 initial public offering ("IPO"). The complaint charges the Company, certain officers and directors and its underwriters with violations of the Securities Act of 1933.
Britannia is an international provider of drybulk shipping and maritime logistics services. On June 17, 2008, Britannia completed an IPO of 8.3 million shares at $15.00 per share raising $116.2 million. Britannia stock closed at $13.85 per share after its first day of trading. On October 28, 2008, Britannia issued a press release announcing that the Company expected significant losses for the third quarter of 2008 as a result of problems associated with hedging activity in which the Company engaged. Following the announcement, the Company's share price fell to $0.16 per share. The Complaint alleges that the Prospectus failed to disclose that the Company did not have controls in place to ensure that its hedging activity in the forward freight agreements ("FFAs") market was limited to minimizing economic risks associated with identifiable ship or cargo positions. Instead, FFAs were used for speculation thereby exposing the Company to significant risks.
Plaintiff seeks to recover damages on behalf of all those that acquired Britannia common stock issued in connection with its June 17, 2008 IPO. If you wish to serve as lead plaintiff, you must move the Court no later than January 5, 2009. If you purchased Britannia common stock and wish to obtain additional information, please contact us at the number listed below or visit http://www.zlk.com/bbulk.html.
L&K has experience in prosecuting investor securities litigation and an extensive practice in actions involving financial fraud and represents investors throughout the nation, concentrating its practice in securities and shareholder litigation.