SNRR Super Nova Resources Inc (CE)

Lerach Coughlin Stoia Geller Rudman & Robbins LLP ("Lerach Coughlin") (http://www.lerachlaw.com/cases/sunterra/) today announced that a class action has been commenced in the United States District Court for the District of Nevada on behalf of purchasers of Sunterra Corporation ("Sunterra") (OTC:SNRR.PK) publicly traded securities during the period between August 14, 2003 and May 17, 2006 (the "Class Period"). If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from July 12, 2006. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, William Lerach or Darren Robbins of Lerach Coughlin at 800/449-4900 or 619/231-1058, or via e-mail at wsl@lerachlaw.com. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.lerachlaw.com/cases/sunterra/. 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. The complaint charges Sunterra and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Sunterra, together with its subsidiaries, engages in the development, marketing, sales, financing, management, and operation of vacation ownership resorts and the points-based vacation ownership club "Club Sunterra" in North America, Hawaii, the Caribbean, and Europe. The complaint alleges that during the Class Period, defendants issued false and materially misleading statements regarding the Company's stellar growth and claimed that the Company's controls were providing increased transparency. As a result of defendants' false statements, Sunterra's stock traded at inflated levels of as high as $16.72 per share during the Class Period, which allowed its top officers to reap tens of millions of dollars in ill-gotten bonuses. On May 3, 2006, the Company announced that pursuant to an internal investigation of allegations made by an individual formerly employed by the Company's Spanish operations, the Company determined that it had underpaid withholding taxes in Spain on wages paid to employees of Sunterra Europe and that it had voluntarily made a payment of $3.1 million to Spanish tax authorities. Then on May 17, 2006, the Company announced that it had received a letter from the staff of The Nasdaq Stock Market on May 15, 2006, indicating that, as a result of the Company not timely filing the Quarterly Report on Form 10-Q for the quarter ended March 31, 2006, the Company was not in compliance with Nasdaq's filing requirement, and that unless the Company requested a hearing in accordance with Nasdaq rules, the Company's securities would be delisted from The Nasdaq National Market. As the above revelations seeped into the market, the Company's stock fell 34% from its Class Period high. According to the complaint, the true facts, which were known by the defendants but concealed from the investing public during the Class Period, were as follows: (a) the Company's reported expenses were materially understated; (b) the Company's so-called "record" financial results were not genuine but rather the result of defendants' accounting manipulations; (c) the Company's reported net income was grossly inflated; and (d) as a result of the above, the Company's projections for fiscal year 2006 were grossly inflated and the Company was in technical default on its subordinated note agreement. Plaintiff seeks to recover damages on behalf of all purchasers of Sunterra publicly traded securities during the Class Period (the "Class"). The plaintiff is represented by Lerach Coughlin, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud. Lerach Coughlin, a 180-lawyer firm with offices in San Diego, San Francisco, Los Angeles, New York, Boca Raton, Washington, D.C., Houston, Philadelphia and Seattle, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. Lerach Coughlin lawyers have been responsible for more than $20 billion in aggregate recoveries. The Lerach Coughlin Web site (http://www.lerachlaw.com) has more information about the firm.