United States District Court for the Middle District of Florida
Donovan Searles is co-lead counsel for plaintiffs and the proposed class in this securities class action. The suit alleges, among other things, that certain of the former officers and directors of Sunterra caused the company to issue materially misleading financial reports and earnings releases about the company’s financial performance and prospects. As a result, plaintiffs contend that they and members of the class purchased Sunterra securities at prices that were artificially inflated because of defendants’ misleading statements and omissions. The suit also names as a defendant Arthur Anderson, LP, which had audited Sunterra’s financial statements and issued clean opinions. After filing for bankruptcy, Sunterra withdrew the financial statements at issue in the suit and stated they should not be used or relied upon by anyone. The case was settled in April 2005 for $5,450,000.