METAIRIE, La., Sept. 12, 2007 LAWFUEL – The Legal Newswire — Law Offices of Eric J. O’Bell, L.L.C. (“EJO”) announces that shareholders of Tarragon Corporation (“Tarragon” or the “Company”) (Nasdaq:TARR) who purchased shares of the Company between January 5, 2005 and August 9, 2007 (the “Class Period”), have 60 days, or until November 13, 2007 to move for appointment as Lead Plaintiff in a securities class action lawsuit currently pending in the United States District Court for the Southern District of New York.
If you purchased shares of Tarragon between the announced Class Period dates above, you are urged to contact Eric J. O’Bell directly at 1-504-456-8677, or via cell phone at 504-616-9400, or email to [email protected] to learn about your legal rights and how this action may benefit you.
The complaint charges Tarragon and certain of its officers and directors with violations of the Securities Exchange Act of 1934, and alleges that, during the Class Period, defendants issued a series of materially false and misleading statements about Tarragon, its business and financial results.
As a result of defendants’ false statements, Tarragon stock traded at artificially inflated prices during the Class Period, reaching a high of $26.76 per share on July 22, 2005. Shares continued to trade at artificially inflated prices until August 9, 2007 — at which time defendants revealed that they would delay the filing of quarterly results for the second quarter 2007, and would force Tarragon to report a massive write-down for property impairment charges in excess of $125 million. On this news, Tarragon’s stock collapsed $1.88 per share to close at $0.94 per share, a decline of 67% on volume of 18 million shares.
As alleged, the true but undisclosed facts, which were known by the defendants or recklessly disregarded throughout the Class Period, included the following: (a) the Company had failed to timely take property impairment charges and other write downs; (b) due to the deterioration in the real estate markets, the Company was experiencing liquidity problems such that serious doubt existed about whether Tarragon could continue as a going concern; (c) Tarragon failed to consolidate an unprofitable entity into its financial statements; (d) the Company had failed to properly account for its statement of cash flows by failing to properly classify its cash inflows and cash outflows as operating, investing and financing activities; (e) as the Company was experiencing a massive downturn in its business; and (f) as a result of the foregoing, the Company lacked a reasonable basis to make positive projections regarding near-term results.
CONTACT: Law Offices of Eric J. O’Bell, L.L.C.
Eric J. O’Bell
3500 North Hullen Street
Metairie, LA 70002