NEW YORK, July 1, 2008 (LAWFUEL) — On June 30, 2008,
Scott+Scott LLP filed a class action against IndyMac Bancorp, Inc.
(“IndyMac” or the “Company”) (NYSE:IMB) and certain officers and
directors in the U.S. District Court for the Central District of
California. The action is on behalf of those purchasing IndyMac common
stock during the period beginning August 17, 2007 through May 11, 2008,
inclusive (the “Class Period”), for violations of the Securities
Exchange Act of 1934. The complaint alleges that during the Class
Period, defendants issued materially false and misleading statements
regarding IndyMac’s business and financial results and, as a result,
the price of the Company’s securities were inflated during the Class
Period, thereby harming investors.
If you purchased IndyMac common stock during the Class Period and wish
to serve as a lead plaintiff in the action, you must move the Court no
later than August 11, 2008. Any member of the investor class may move
the Court to serve as lead plaintiff through counsel of its choice, or
may choose to do nothing and remain an absent class member. If you wish
to discuss this action or have questions concerning this notice or your
rights, please contact Scott+Scott ([email protected], (800)
404-7770, (860) 537-5537 or visit the Scott+Scott website,
http://www.scott-scott.com) for more information. There is no cost or
fee to you.
According to the complaint, defendants concealed IndyMac’s growing
exposure to loans in its pay-option adjustable-rate mortgage (“Option
ARM”) and homebuilder construction portfolios and made false
representations regarding the Company’s capital position in an attempt
to divert investors’ concerns regarding the Company’s capital erosion.
As a result of defendants’ false statements, IndyMac stock traded at
artificially inflated prices during the Class Period.
On May 12, 2008, the Company stunned investors when it reported a first
quarter net loss of $184.2 million, or ($2.27) per share. On this news,
IndyMac’s stock dropped to close at $2.32 per share — a two-day
decline of $1.11 per share, or 32%. Since October 2, 2007, the
Company’s battered shares have declined from $24.55 per share, or 91%.
Scott+Scott has significant experience in prosecuting major securities,
antitrust and employee retirement plan actions throughout the United
States. The firm represents pension funds, foundations, individuals and
other entities worldwide.