NEW YORK–LAWFUEL – Law News Network –Lerach Coughlin Stoia Geller Rudman & Robbins LLP (“Lerach Coughlin”) (http://www.lerachlaw.com/cases/toa/) today announced that a class action lawsuit has been commenced in the United States District Court for the Southern District of Florida on behalf of purchasers of Technical Olympic USA, Inc. (“Technical Olympic” or the “Company”) (NYSE:TOA) common stock during the period between August 1, 2005 and November 6, 2006, inclusive (the “Class Period”).
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Samuel H. Rudman or David A. Rosenfeld of Lerach Coughlin at 800/449-4900 or 619/231-1058 or via e-mail at [email protected] If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.lerachlaw.com/cases/toa/. 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 charges Technical Olympic and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Technical Olympic, based in Hollywood, Florida, engages in the design, building, and marketing of single-family residences, town homes, and condominiums in the United States.
According to the complaint, at the start of the Class Period, Technical Olympic issued a press release announcing that, through a joint venture, it had completed the acquisition of the homebuilding assets and operations of Transeastern Properties, Inc. The press release further stated that the joint venture was funded with debt provided by Deutsche Bank, among others, and was non-recourse to Technical Olympic. The Company also issued multiple press releases throughout the Class Period describing the financial contribution made, and expected to be made, by the Transeastern Joint Venture to Technical Olympic’s overall financial performance.
As alleged in the complaint, these statements were materially false and misleading because defendants knew, but did not disclose: (i) that the Company’s exposure to the Transeastern Joint Venture’s debt was not “non-recourse” and that, under certain circumstances, the Company would be liable for the debt of the joint venture; and (ii) that the Transeastern Joint Venture was experiencing a severe slowdown that would likely result in the loss of the Company’s investment in the joint venture and any loans or receivables that were owed to it.
After the close of the market on November 6, 2006, the Company disclosed – for the first time – in a filing with the United States Securities and Exchange Commission that the Company faced exposure for the full repayment of the loans of the Transeastern Joint Venture in the event the Joint Venture voluntarily filed for bankruptcy protection. Then, the next day, the Company disclosed that one of the lenders to the joint venture had made a demand on the Company in connection with the debt of the joint venture, causing the Company’s stock price to decline further.
Plaintiff seeks to recover damages on behalf of all purchasers of Technical Olympic common stock during the Class Period (the “Class”). The plaintiff is represented by Lerach Coughlin, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Lerach Coughlin, a 180-lawyer firm with offices in San Diego, San Francisco, Los Angeles, New York, Boca Raton, Washington, D.C., Houston, Philadelphia and Seattle, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. Lerach Coughlin lawyers have been responsible for more than $20 billion in aggregate recoveries. The Lerach Coughlin Web site (http://www.lerachlaw.com) has more information about the firm.