NEW YORK, Aug. 27, 2007 LAWFUEL – The Legal Newswire — Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com) (“Pomerantz”) has filed a class action lawsuit in the United States District Court Eastern District of Pennsylvania, against RAIT Financial Trust (“RAIT” or the
“Company”) (NYSE:RAS) and certain officers, on behalf of purchasers of the common stock of the Company during the period from January 10, 2007
– July 31, 2007, both dates inclusive (the “Class Period”). The complaint alleges violations of Sections 12(a)(2) and 15 of the Securities Act of 1933 and Sections 10(b) and 20(a) of the 1934 Act, and Rule 10b-5 promulgated thereunder.
RAIT is a specialty finance company located in Philadelphia. The complaint alleges that in June 2006, RAIT entered into an agreement and plan of merger with Taberna Financial Realty Trust (“Taberna”), a private company that provided long-term subordinated debt and preferred securities. The merger was completed on December 11, 2006. At that time there was no disclosure of the details of the Taberna loans and financing instruments which included trust preferred securities issued to American Home Mortgage Investment Corporation (“AHM”) in 2005. On January 10, 2007, RAIT filed a Registration Statement and Prospectus describing the core components of the Company’s business to include “a robust origination network, a disciplined credit underwriting process and, through our ownership of Taberna, an ability to finance our business more efficiently through the use of collaterized debt obligation (“CDO”) transactions”. Then on July 31, 2007, the Company issued an announcement disclosing that it did not receive payment of the trust preferred securities due on July 30, 2007 from AHM, resulting in a net equity exposure of at least $95 million. As a result of this news, the price of RAIT’s common stock fell from a close on July 30,
2007 of $16.06 to a close on July 31, 2007 of $10.36.
If you purchased the securities of RAIT during the Class Period, you have until September 30, 2007 to ask the Court to appoint you as lead plaintiff for the Class. Lead plaintiffs must meet certain legal requirements. Shareholders outside the United States may also join the action. If you wish to review a copy of the Complaint, to discuss this action, or have any questions, please contact Teresa L. Webb
([email protected]) or Carolyn S. Moskowitz ([email protected]) of the Pomerantz Firm at 888.476.6529 (or 888.4-POMLAW), toll free. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
The Pomerantz Firm, which has offices in New York, Chicago and Washington, D.C., is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. For more information about the Firm, visit our web site at www.pomlaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca
CONTACT: Pomerantz Haudek Block Grossman & Gross LLP