ENGLEWOOD CLIFFS, N.J., Aug. 3, 2007 LAWFUEL – The Legal Newswire — Gardy & Notis, LLP announces that it has filed a class action lawsuit in the United States District Court for the Eastern District of New York on behalf of all persons who purchased or otherwise acquired the publicly traded securities of American Home Mortgage Investment Corp. (NYSE:AHM) between July 26, 2006 and July 27, 2007.
The lawsuit alleges that American Home Mortgage and its Chief Executive Officer and Chief Financial Officer violated the federal securities and defrauded investors by failing to disclose AHM’s inadequate reserves for delinquent loan repurchases. By failing to properly disclose that AHM was operating without adequate reserves in relation to its portfolio of loan products, as well as AHM’s failed plan to repurchase delinquent loans, AHM materially misrepresented to investors the true facts concerning its financial performance and prospects. AHM has since announced that it will lay off most of its employees and shut down almost all of its operations.
If you purchased or otherwise acquired any publicly traded securities of American Home Mortgage, you may, no later than October 1, 2007, request that the Court appoint you as lead plaintiff for the class. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
If you wish to obtain a copy of the complaint or have any questions concerning this lawsuit, please contact Mark Gardy at 201-567-7377 or by e-mail at [email protected]
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca