COLCHESTER, Conn., Sept. 21, 2007 LAWFUEL – The Class Actions Newswire — On September 19, 2007, Scott+Scott, LLP filed a class action against Thornburg Mortgage, Inc. (“Thornburg Mortgage” or the “Company”) (Nasdaq:TMA) and certain officers and directors in the U.S. District Court for the Southern District of New York. The action is on behalf of Thornburg Mortgage common stock purchasers during the period April 19, 2007 and through August 14, 2007, inclusive (the “Class Period”), for violations of the Securities Exchange Act of 1934. The complaint alleges that defendants made false and misleading statements and material omissions regarding the Company’s business and operations and that, as a result, the price of the Company’s securities was inflated during the Class Period, thereby harming investors.
If you purchased Thornburg Mortgage stock during the Class Period and wish to serve as a lead plaintiff in the action, you must move the Court no later than October 22, 2007. 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, during the Class Period, it is alleged that defendants made false and misleading statements and omissions to the investment community, which served to artificially inflate the price of Company securities. In spite of the Company’s repeated claims of “a unique approach to loan originations,” affluent lender clientele and lending channels, defendants knew and concealed the flawed, defective and materially overstated nature of the Company’s financial results.
Defendants knew and concealed that (i) the Company’s financial position had deteriorated, to the point where it faced increasing margin calls;
(ii) leveraging capacity and capabilities at the Company were adversely impacted; and (iii) the financial situation had deteriorated to the point where the Company would be forced to sell certain assets.
On August 14, 2007, Thornburg Mortgage issued a shocking press release, announcing that its Board of Directors has rescheduled the payment date of the company’s second quarter common dividend of $0.68 per share to September 17, 2007, signaling the Company’s inability to continue its mortgage securitization and mortgage lending operations. Following the shocking news, on August 14, 2007, shares of Thornburg Mortgage stock tumbled $6.67 or 46.7%, closing at $7.61 on volume of 27.2 million shares, for a loss of $805 million in market capitalization. On August 20, 2007, the true dimensions of Company’s liquidity and financing needs materialized, as the Company announced capital losses of as much as $930 million, resulting in part from the Company’s liquidation of
$20.5 billion of its “AAA-rated” mortgage backed securities.
The plaintiff is represented by Scott+Scott, a firm with significant experience in prosecuting investor class actions. Please visit our website at www.scott-scott.com for current information on the litigation of major securities, antitrust, employment and employee retirement plan actions throughout the United States. The firm represents pension funds, charities, foundations, individuals and other entities worldwide.