Among the underwriters who were sued by the investor in a $300 million debt submission by Overseas Shipholding Group Inc. (NYSE: OSGIQ) that filed for bankruptcy on November 14, Citigroup, Inc. (NYSE: C), Morgan Stanley (NYSE:MS) and HSBC Securities (USA) Inc. (HSBA) were included.<\/p>\n
As per the lawsuit filed in New York state court, on November 21, the overseas directors and officers of these underwriters had signed misleading financial documents for the offering of\u00a0 March 24, 2010.<\/p>\n
The biggest U.S. tanker operator, Overseas Shipholding Group Inc. (NYSE: OSG) sought bankruptcy protection after starting on October 22 that the company\u2019s financial statements had inaccurate information from 2009 to the first two quarters of 2012. Prior to making this statement, the Shipholding Group based in New York showed 13 straight quarters of net losses as shipping rates started to decline.<\/p>\n
In the complaint, Spokeswomen of Citigroup, Inc. (NYSE: C), Danielle Romero-Apsilos , Mary Claire Delaney of Morgan Stanley and Juanita Gutierrez of HSBC Securities (USA) denied to give any comments. Securities at concern as per the suit are 8 1\/8 percent senior notes that are outstanding in 2018. All the three companies are based in New York. The complaint states that due to the inaccurate financial filings given by the company, it was unaccountable for any kind of tax liabilities.<\/p>\n
Wales mentioned in the complaint, that when the firm informed the investors that it would remove the statements due to inaccuracies, this announcement shocked the market that lead to the immediate decline of the firm\u2019s\u00a0 credit ratings. Wales further stated, that the firm had to be foreclosed from getting an access to the commercial paper, capital and credit markets and hence, it was not able to get the funding that it needed to run the business. Wales<\/p>\n
As per the suit, the underwriters are responsible for damages as much as the sum of money of the securities each of them handled in the offering.<\/p>\n
Shares of Citigroup, Inc. (NYSE: C) were up by 0.73% to close at $36.03, Shares of Morgan Stanley (NYSE:MS) were up by 1.11% to close at $16.43, and shares of Overseas Shipholding Group Inc. (NYSE: OSGIQ) were up by 2.70% to close at $0.86.<\/p>\n","protected":false},"excerpt":{"rendered":"
Among the underwriters who were sued by the investor in a $300 million debt submission by Overseas Shipholding Group Inc. (NYSE: OSGIQ) that filed for […]<\/p>\n","protected":false},"author":15,"featured_media":93,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[261],"tags":[1008,1431,1432],"stock_ticker":[],"class_list":["post-4760","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-decliners","tag-nysec","tag-nysems","tag-nyseosgiq","entry"],"acf":[],"yoast_head":"\n