Lawfuel.com – Class Actions News – Goldman Scarlato & Karon, P.C., a law firm with offices in Pennsylvania and Ohio, announces that a lawsuit has been filed in the United States District Court for the Southern District of California, on behalf of persons who purchased or otherwise acquired publicly traded securities of Accredited Home Lenders Holding Co. (“Accredited” or the “Company”) (NASDAQ:LEND – News) between November 1, 2005 and March 12, 2007, inclusive, (the “Class Period”). The lawsuit was filed against Accredited and certain officers and directors (“Defendants”).
If you are a member of this class and wish to view a copy of a complaint and join this class action, please e-mail us at [email protected] and request a copy of the complaint and a plaintiff certification. If you are a member of the Class, you may move the Court no later than May 15, 2007 to serve as a 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.
The complaint alleges that Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. Specifically, the complaint alleges that Defendants issued a series of materially false and misleading statements regarding the Company’s business and financial results.
As alleged in the Complaint, on February 14, 2007, the Company issued a press release announcing poor profitability. Then, on March 12, 2007, the Company issued a press release announcing that it was exploring strategic alternatives. It also reported that it had paid approximately $190 million in margin calls on its facilities since January 1, 2007. In addition, the Company was also seeking waivers and extensions of certain financial and operating covenants under its warehouse and repurchase facilities. The Company’s shares reacted negatively to the news, falling from $11.40 per share to $3.97 per share in heavy trading.
If you bought Accredited securities between November 1, 2005 and March 12, 2007, inclusive, and would like to obtain information about the lawsuit, then you are invited to call (888) 668-4130 to speak with an advisor.