HARTFORD, Conn., Aug. 9, 2007 LAWFUEL – The Legal Newswire — The law firm of Schatz Nobel Izard P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Northern District of California on behalf of all persons who purchased the publicly traded securities of Luminent Mortgage Capital, Inc. (“Luminent”) (NYSE:LUM) between October 10, 2006 and August 6, 2007, inclusive (the “Class Period”). Also included are those who purchased in the Secondary Offering on October 13, 2006.
The Complaint charges that Luminent and certain of its officers and directors violated federal securities laws by issuing materially false statements regarding the Company’s business and financial results.
Specifically, defendants knew but concealed the following: (i) Luminent lacked requisite internal controls, and, as a result, the Company’s projections and reported results issued during the Class Period were based upon defective assumptions and/or manipulated facts; (ii) the Company’s investments in mortgage loans were not all “high quality” as claimed , nor was its hedging disciplined and sophisticated as to credit risk; and (iii) Luminent was not on track to report the earnings forecast or to pay the dividends promised. During the Class Period, while the price of Luminent stock was artificially inflated, defendants completed a Secondary Offering in October 2006 at $10.25 per share and a $90 million private placement of 8.125% Convertible Senior Notes.
On August 6, 2007, after the market closed, the Company announced that the secondary market for mortgage loans and mortgage-backed securities had seized-up, and, as a result, Luminent was experiencing a significant increase in margin calls on its highest quality assets and a decrease on the financing advance rates provided by its lenders. On August 7, 2007, Luminent fell $3.30 to close at $1.08 per share.
If you are a member of the class, you may, no later than October 8, 2007, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz Nobel Izard P.C. has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz Nobel Izard P.C. toll-free at
(800) 797-5499, or by e-mail at [email protected], or visit our website: