Scottish Re investors have won an award of $37.5 million in a class action lawsuit against the Bermuda-based company, several former officers and directors, its auditors and underwriters of two public offerings of the reinsurer's shares in 2005.

Among the defendants were Lord Norman Lamont, a former UK Chancellor of the Exchequer under the then-Prime Minister Margaret Thatcher, and the life reinsurer's former chief executive officer Scott Wilkomm, KYC News' Offshore Alert online newsletter reported yesterday.

Michael Austin, who was a director of the Cayman Islands Monetary Authority from 1997 to 2004, was also named as a defendant.

All investors who acquired Scottish Re shares of any class between February 17, 2005 and February 20, 2007 are eligible to recover some money.

The class litigation was initiated on August 2, 2006 - just two days after Scottish Re's share price fell by 75 percent from $16 to $3.99 on the New York Stock Exchange in one trading day.

The collapse was caused by three major events occurring before the start of trading on July 31, specifically a warning by the firm that it expected to report a net operating loss of $130 million for the second quarter ended June 30, 2006, the sudden resignation of its CEO, and a front-page article in the Wall Street Journal about tax evasion allegations against the firm's founders, Sam and Charles Wyly.

In the class action complaint, it was alleged the defendants issued false and misleading statements and made omissions concerning Scottish Re's financial well-being and future business prospects and that they covered up significant operational deficiencies.

The defendants included Michael Austin, who was a director of the Cayman Islands Monetary Authority from 1997 to 2004 and its Chairman from 2002 to 2004, and Lord Norman Lamont, who served as a Government Minister in the United Kingdom from 1979 to 1993 under Prime Minister Margaret Thatcher.

Under the terms of the proposed agreement, class counsel will receive 15 percent of the settlement amount as fees - a total of $5.6 million - plus an additional $600,000 as reimbursement for expenses.

Other defendants were Elizabeth Murphy, Dean E. Miller, Michael C. French, William Caulfeild-Browne, Robert Chmely, Hazel O'Leary, Lehman Brothers Inc.; Bear, Stearns & Co. Inc., Banc of America Securities LLC; Keefe, Bruyette & Woods, Inc.; Oppenheimer & Co. Inc.; Advest, Inc.; RBC Dain Rauscher Inc.; Stifel, Nicolaus & Company, Incorporated; Goldman, Sachs & Co.; Wachovia Capital Markets, LLC; A.G. Edwards & Sons, Inc.; Fox-Pitt, Kelton Incorporated; Bear Stearns International Limited; Lehman Brothers OTC Derivatives, and Scottish Re's independent auditors during the class period, Ernst & Young LLP.