Miami, Jan 22: A group of investors is suing the world's largest funeral and cemetery services company, accusing executives of failing to disclose problems with mishandled remains and not having adequate financial reserves to deal with lawsuits stemming from the mistakes. Attorney Kenneth Vianale filed the lawsuit in Miami federal court against Houston-based Service Corporation International and three executives, accusing them of violating federal securities laws.
The company has already settled two lawsuits filed over the handling of remains at SCI-owned menorah Gardens Cemeteries in Florida's Broward and Palm Beach counties.
Last month, the company reached a USD 100 million settlement with about 700 families that accused the cemeteries of misplacing bodies, losing track of and overselling plots, smashing vaults and in some cases digging up remains to make room for new graves.
Vianale said yesterday that shareholders affected by double-digit percentage drops in the company's stock price were defrauded because company officials "made no disclosure of the problems at menorah gardens, which were substantial”.
The lawsuit, filed January 15, seeks class-action status. It doesn't specify damages.
SCI spokesman Don Mathis said he could not comment directly on the lawsuit because the company had not seen it, but he said he was not surprised by the legal action. Bureau Report