PHILADELPHIA, March 1, 2005 (PRIMEZONE) -- The law firm of Donovan Searles, LLC announces that the United States District Court for the Middle District of Florida has entered an order preliminarily approving the settlement of the securities class action entitled In re Sunterra Corporation Securities Litigation.
ALL PERSONS WHO PURCHASED OR ACQUIRED THE COMMON STOCK OF SUNTERRA COPRORATION ("SUNTERRA" OR THE "COMPANY") DURING THE PERIOD OCTOBER 6, 1998 THROUGH AND INCLUDING JANUARY 19, 2000 (THE "CLASS") ARE HEREBY NOTIFIED, that a hearing will be held on April 26, 2005 at 9:00 a.m. at the United States District Court for the Middle District of Florida, Orlando Division, Courtroom 4, George C. Young United States Courthouse & Federal Building, 80 North Hughey Avenue, Orlando, Florida 32801 to determine whether (1) the proposed settlement (the "Settlement") of the above-entitled class action for $4,450,000, in cash plus accrued interest (the "Settlement Amount") should be approved by the Court as fair, reasonable, and adequate; (2) the application of Plaintiffs' Lead Counsel for an award of attorneys' fees and reimbursement of expenses should be approved; and (3) the Action should be dismissed with prejudice.
IF YOU PURCHASED OR ACQUIRED SUNTERRA COMMON STOCK DURING THE PERIOD DESCRIBED ABOVE, YOUR RIGHTS MAY BE AFFECTED BY THE SETTLEMENT OF THIS ACTION. To share in the distribution of the Net Settlement Fund, you must establish your rights by filing a Proof of Claim and Release ("Proof of Claim") on or before July 25, 2005.
THE ALLEGATIONS AGAINST DEFENDANTS
The captioned litigation is a class action alleging violations of the federal securities laws against certain former directors and/or officers of Sunterra, as well as Arthur Andersen LLP (collectively, the "Defendants"). Lead Plaintiffs have alleged that Defendants issued materially false and misleading public filings, press releases, and other statements regarding Sunterra's financial condition during the Class Period in violation of Sections 10(b) and 20(a) of the Exchange Act, as amended, and SEC Rule 10b-5, 17 C.F.R. sec. 240.10b-5.
EXCLUSION FROM THE SETTLEMENT
If you desire to be excluded from the Class, you must file a request for exclusion by April 5, 2005 in the manner and form explained in the detailed Notice referred to below. All members of the Class who have not requested exclusion from the Class will be bound by the Settlement and any judgment and release entered in the Action even if they do not file a timely Proof of Claim. Any Class member who has not validly and timely requested to be excluded from the Class, and who objects to any aspect of the Settlement, the Plan of Allocation, the adequacy of representation by Plaintiffs' Lead Counsel, or the application for attorneys' fees, costs and expenses, may appear and be heard at the Settlement Hearing. Any such Person must submit a written notice of objection by April 12, 2005, in the manner and form explained in the detailed Notice referred to below.
If you have not yet received the Notice of Pendency of Class Action, which more completely describes the Settlement and your rights thereunder, and a Proof of Claim form, you may obtain copies of these documents by identifying yourself as a member of the Class and by writing to: Sunterra Corporation Securities Litigation, Claims Administrator, Strategic Claims Services, 2710 Concord Road, Suite 5, Aston, PA 19014, or by calling 1-800-274-4004; or Bernstein Liebhard & Lifshitz, LLP, Attn: Timothy J. MacFall, Esq., 10 East 40th Street, 20th Floor, New York, N.Y. 10016; or Donovan Searles, LLC, Attn: Michael D. Donovan, 1845 Walnut Street, Suite 1100, Philadelphia, PA, 19103
Inquiries should NOT be directed to Sunterra Corporation, the Court, or the Clerk of Court.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.