LAWFUEL – Legal Announcement –
New York, NY— August 3, 2007 — Attorney Advertising. The law firm of Milberg Weiss LLP announces its investigation of American Home Mortgage Investment Corp. (NYSE: AHM) (“American Home Mortgage ” or the “Company”), certain of American Home Mortgage’s officers and directors, as well as Citigroup Global Markets Inc., the underwriter of the company’s May 4, 2007 common stock offering, for allegedly issuing materially false and misleading statements and potentially violating federal securities laws, as well as certain other duties.
American Home Mortgage is a real estate investment trust (REIT) which has engaged in the investment and origination of residential mortgage loans in the United States. The Company primarily originated and sold securitized adjustable-rate mortgage loans, as well as engaged in the sale of mortgage loans to institutional investors and the servicing of mortgage loans owned by others.
If you purchased or otherwise acquired American Home Mortgage: (a) common stock, preferred stock Series A (Cusip 02660R206) and/or Series B (Cusip 02660R305), call options, or sold put options, from April 26, 2006 and July 27, 2007, inclusive (the “Class Period”); or (b) purchased American Home Mortgage common stock pursuant or traceable to the Company’s May 4, 2007 common stock offering, you are encouraged to contact Milberg Weiss LLP at 1-800-320-5081 or at [email protected] to learn about its investigation of American Home Mortgage and to discuss your legal rights.
According to complaints filed in United States District Court for the Eastern District of New York, during the Class Period defendants allegedly issued materially false and misleading statements that misrepresented and failed to disclose that: (i) the Company was experiencing an increasing level of loan delinquencies which was depressing its earnings; (ii) that the Company was experiencing increasing difficulties in selling its loans and, therefore, was required to decrease prices, thereby reducing margins and profits; and (iii) as a result of the foregoing, the Company was overstating its financial results by failing to write-down the value of certain of the loans in its portfolio as these loans had declined substantially in value. The complaint charges American Home Mortgage and certain of its officers and directors with violations of the Exchange Act.
Further according to the complaints, on June 28, 2007, American Home Mortgage issued a press release announcing that it will take “substantial charges for credit-related expenses in the second quarter.” The Company reported that the increase in losses was related to its practice of extending a three month timely payment warranty that the Company granted to loan buyers who purchased stated income loans. In response to this announcement, the price of American Home Mortgage stock declined from $20.91 per share to $18.38 per share on extremely heavy trading volume. Then, on July 27, 2007, after the close of the market, American Home Mortgage issued a press release announcing that its Board of Directors had determined to delay paying its dividend. In response to this announcement, on July 30, 2007, the NYSE halted trading in American Home Mortgage stock before the market opened.
If you purchased or acquired the securities of American Home Mortgage during the Class Period, you may move the court no later than sixty (60) days after the date on which the first notice was published (the first notice was published on July 31, 2007), and request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. To be appointed lead plaintiff, the Court must decide that your claim is typical of the claims of other class members, and that you will adequately represent the class. Your share in any recovery will not be enhanced or diminished by the decision whether or not to serve as a lead plaintiff. You may retain Milberg Weiss LLP, or other attorneys, to serve as your counsel in this action.
Milberg Weiss LLP has been representing individual and institutional investors for nearly 40 years and serves as lead counsel in federal and state courts throughout the United States. Please visit the Milberg Weiss website (http://www.milbergweiss.com) for more information about the firm. If you wish to discuss this matter with us, or have any questions concerning your rights and interests with regard to this matter, please contact the following attorneys: