Shareholder Class Action Filed Against Britannia Bulk Holdings Inc. By The Law Firm of Barroway Topaz Kessler Meltzer & Check, L
November 19 2008 - 6:00PM
PR Newswire (US)
RADNOR, Pa., Nov. 19 /PRNewswire/ -- The following statement was
issued today by the law firm of Barroway Topaz Kessler Meltzer
& Check, LLP: Notice is hereby given that a class action
lawsuit was filed in the United States District Court for the
Southern District of New York on behalf purchasers of the common
stock of Britannia Bulk Holdings Inc. ("Britannia Bulk" or the
"Company") (OTC:BBLKF), who purchased or otherwise acquired common
stock pursuant or traceable to the Company's June 17, 2008 Initial
Public Offering (the "IPO" or the "Offering"). If you wish to
discuss this action or have any questions concerning this notice or
your rights or interests with respect to these matters, please
contact Barroway Topaz Kessler Meltzer & Check, LLP (Darren J.
Check, Esq. or David M. Promisloff, Esq.) toll free at
1-888-299-7706 or 1-610-667-7706, or via e-mail at . The Complaint
charges Britannia Bulk and certain of its officers and directors
with violations of the Securities Act of 1933. Britannia Bulk is an
international provider of drybulk transportation services focusing
on transporting drybulk commodities in the Baltic region. More
specifically, the Complaint alleges that the Company failed to
disclose and misrepresented the following material adverse facts
which were known to defendants or recklessly disregarded by them:
(1) that the Company had not instituted or enforced protocols to
prevent employees from buying forward freight agreements ("FFAs")
that were not purchased to hedge identifiable cargo or ship
positions; (2) that Company was exposed to considerable risk due to
FFAs being used outside of their stated guidelines; (3) that the
Company had failed to enter into proper fixed price contracts at a
time when crude oil and bunker fuels were experiencing tremendous
fluctuation; (4) that the Company lacked adequate internal and
financial controls; and (5) that, as a result of the foregoing, the
Company's Registration Statement was false and misleading at all
relevant times. On or about June 17, 2008, the Company conducted
its IPO. In connection with the IPO, the Company filed a
Registration Statement and Prospectus (collectively referred to as
the "Registration Statement") with the SEC. The IPO was a financial
success for the Company and its underwriters, as they raised $125
million by selling over 8.33 million shares of the Company's common
stock to investors at a price of $15.00 per share. However, on
October 28, 2008 the Company announced that since July 2008, it had
bought FFAs that appeared not to have been purchased to hedge
identifiable ship or cargo positions. This was in stark contrast to
their stated purpose in the Registration Statement that they were
entered into "with an objective of economically hedging the risk of
the fleet, specific vessels or freight commitments." This resulted
in "the Company being more exposed to falling charter rates and
reduced overall demand for dry bulk shipping services than it would
have been if its historic practice of using FFAs as economic hedges
had been followed." Then, on October 29, 2008, the Company
announced that effectively immediately, its common shares would be
suspended from trading on the New York Stock Exchange ("NYSE").
Finally, on October 31, 2008, the Company announced that its
indirect wholly owned subsidiary, Britannia Bulk Plc, had been
placed into administration under United Kingdom insolvency laws. In
response to this news, shares of the Company's stock declined $1.63
per share, or 85.79 percent, to close on October 28, 2008 at $0.27
per share, on unusually heavy trading volume. This closing price on
October 28, 2008 represented a cumulative loss of $14.73, or over
98 percent, of the value of the Company's shares at the time of its
IPO just months prior. Thereafter, the value of the Company's
shares continued to decline, trading as low as $0.01 per share. At
the time this Complaint was filed, the Company's shares were
trading for about $0.03 per share. Plaintiff seeks to recover
damages on behalf of class members and is represented by the law
firm of Barroway Topaz Kessler Meltzer & Check which prosecutes
class actions in both state and federal courts throughout the
country. Barroway Topaz Kessler Meltzer & Check is a driving
force behind corporate governance reform, and has recovered
billions of dollars on behalf of institutional and individual
investors from the United States and around the world. For more
information about Barroway Topaz Kessler Meltzer & Check or to
sign up to participate in this action online, please visit
http://www.btkmc.com/ If you are a member of the class described
above, you may, not later than January 5, 2009, move the Court to
serve as lead plaintiff of the class, if you so choose. A lead
plaintiff is a representative party that acts on behalf of other
class members in directing the litigation. In order to be appointed
lead plaintiff, the Court must determine that the class member's
claim is typical of the claims of other class members, and that the
class member will adequately represent the class. Your ability to
share in any recovery is not, however, affected by the decision
whether or not to serve as a lead plaintiff. Any member of the
purported class may move the court to serve as lead plaintiff
through counsel of their choice, or may choose to do nothing and
remain an absent class member. CONTACT: Barroway Topaz Kessler
Meltzer & Check, LLP Darren J. Check, Esq. David M. Promisloff,
Esq. 280 King of Prussia Road Radnor, PA 19087 1-888-299-7706 (toll
free) or 1-610-667-7706 Or by e-mail at DATASOURCE: Barroway Topaz
Kessler Meltzer & Check, LLP CONTACT: Darren J. Check, Esq. or
David M. Promisloff, Esq., +1-888-299-7706 or +1-610-667-7706, ,
both of Barroway Topaz Kessler Meltzer & Check, LLP Web site:
http://www.sbtklaw.com/ http://www.btkmc.com/
Copyright