HARTFORD, Conn., March 7, 2008 (PRIME NEWSWIRE) -- The law firm of Schatz Nobel Izard P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Eastern District of Louisiana on behalf of all persons who purchased the common stock of Superior Offshore International, Inc. ("Superior Offshore" or the "Company") (Nasdaq:DEEP) in connection with the Initial Public Offering ("IPO") on or about April 20, 2007 through January 9, 2008, inclusive, (the "Class Period").
The Complaint alleges that Superior Offshore and certain of its officers, directors and underwriters violated federal securities laws by issuing a materially false and misleading Registration Statement and Prospectus in connection with the IPO. On April 20, 2007, Superior Offshore and Company insiders sold over 10 million shares to the public, raising proceeds in excess of $152 million. Unbeknownst to investors, at the time of the IPO, the Company's sales had been adversely affected, its core business was not performing according to plan and its core market in the Gulf of Mexico was declining.
On August 14, 2007 -- after Company insiders liquidated over $49 million of their personally held shares -- Superior Offshore revealed that the problems existing at the time of the IPO would result in extremely disappointing results for the foreseeable near-term, and would force Defendants to reorganize the Company. On November 14, 2007, shares declined after Defendants revealed that the Company was operating even below its recently revised forecasts, and that its core business was operating even worse than previously disclosed. On January 9, 2008, the Company announced that it was suspending its prior substantially downward revised guidance. On this news, shares of Superior Offshore fell from their offering price of $15 per share to approximately $3.50 per share.
If you are a member of the class, you may, no later than April 28, 2008, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz Nobel Izard P.C. has not filed a lawsuit against the Defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz Nobel Izard P.C. toll-free at (800) 797-5499, or by e-mail at firm@snilaw.com, or visit our website: www.snilaw.com.