The United States District Court for the District of Massachusetts ordered on the 16th August 2006 that the case brought by the Highfields investment funds against SCOR be dismissed without prejudice due to the Highfields investment funds' failure to establish the Court's subject matter jurisdiction.

 

SCOR has been informed by the Highfields investment funds that they have filed a new complaint in the Superior Court of the State of Massachusetts, but SCOR has not yet been served with that pleading.

 

SCOR has always considered and continues to consider that the Highfields investment funds made a successful, highly profitable investment in IRP, and SCOR believes the Highfields investment funds have no legitimate basis for complaint. SCOR intends to defend against any such newly commenced action, to preserve its options to seek redress, and to pursue the Highfields investment funds for damages and expenses incurred in defending itself against what it believes is unfounded litigation by the Highfields investment funds.