OSG investors settle in suit against firm’s executives, accountants and underwriters

OSG investors settle in suit against firm’s executives, accountants and underwriters

Investors in New York-based Overseas Shipholding Group (OSG) have come to a $16.25 million lawsuit settlement with the tanker operating company’s executives, underwriters and an auditor.

The lawsuit relates to the firm’s 2012 bankruptcy and tax issues.

OSG executives agreed to pay $10.5 million, underwriters (including Citigroup, Deutsche Bank and Goldman Sachs) will pay $4 million, and accounting firm PricewaterhouseCoopers will pay $1.75 million, according to papers filed in a Manhattan federal court.

Shareholders sued the company’s officers as it headed towards Chapter 11 bankruptcy in late 2012. They accused the 21 defendants of making false and misleading statements about OSG’s operational status and financial projections, including its outstanding tax obligations.

The settlement follows an earlier deal in OSG’s bankruptcy case for the company to pay investors at least $15 million.

OSG emerged from bankruptcy last year, and in May filed for an initial public offering.

Donal Scully

With 28 years experience writing and editing for newspapers in the UK and Hong Kong, Donal is now based in California from where he covers the Americas for Splash as well as ensuring the site is loaded through the Western Hemisphere timezone.

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