An Ohio state pension fund is seeking to lead a class action lawsuit against troubled Bermuda life reinsurer Scottish Re Group Ltd.

Ohio Attorney General Jim Petro this week filed a motion in federal court in New York requesting the State Teachers Retirement System of Ohio be appointed lead plaintiff in the lawsuit filed in August.

The reinsurance company?s disclosures of serious accounting problems in July precipitated an immediate 75 percent decline in the company?s stock price and caused STRS to suffer losses of more than $16 million, Mr. Petro said.

?We intend to hold Scottish Re accountable for these losses,? Petro said. ?We will aggressively pursue recovery for STRS and other purchasers of Scottish Re?s securities during the class period, just as we have against other corporations whose fraud has harmed investors.?

The company?s July disclosures had to do with tax credits that had previously boosted the company?s financial results that were now being reversed, as well as previously reported revenues that had to be reversed.

l Scottish Re this week said that subject to finalisation of customary treaty terms, it has completed a reinsurance transaction with an independent third party that will provide the Company with additional liquidity of up to $120 million.

?On September 11, 2006, we announced our plans to raise between $150 million to $250 million to reduce near term liquidity pressure under a combination of reinsurance arrangements and credit facilities? said Paul Goldean, president and chief executive officer. ?I am pleased to report the completion of this reinsurance transaction which represents an important step forward towards addressing the Company?s near term liquidity requirements.?