HARTFORD, Conn., Nov. 21, 2007 LAWFUEL – The Legal Newswire — The law firm of Schatz Nobel Izard P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that it has filed a lawsuit seeking class action status in the United States District Court for the Northern District of Texas on behalf of all persons who purchased or otherwise acquired the common stock of Home Solutions of America, Inc. (“HSOA” or the “Company”) (Nasdaq: HSOA) between May 18, 2007 and November 14, 2007, inclusive (the “Class Period”).
The Complaint charges that HSOA and certain of its officers and directors violated federal securities laws. Specifically, the Complaint alleges that throughout the Class Period, Defendants made false and misleading statements concerning construction contracts for projects at three sites in New York, including Manhattan, and a site in Florida.
Unbeknownst to investors, Defendants failed to disclose the following:
(i) HSOA did not have an agreement with Blue Diamond Construction to perform construction with respect to at least one of the three New York sites Defendants had previously identified; and (ii) that the party that had reportedly awarded the Florida contract to HSOA was a party related to HSOA.
On August 15, 2007, HSOA revealed that (i) the Florida project was a related party transaction; (ii) that in July HSOA had “received informal inquiries from the SEC and Nasdaq with respect to prior disclosure and related issues;” and (iii) that management had requested that the audit committee perform an investigation into related party transactions and disclosures. Then, on September 27, 2007, Defendants acknowledged that they did not have a contract for the Manhattan element of the New York projects. Finally, on November 14, 2007, HSOA announced that it would delay the filing of its third quarter financial results, citing its “voluntary review of related party transactions.”
On this news, HSOA’s stock dropped over 20% to close at $1.57 per share on November 15, 2007.
If you are a member of the class, you may, no later than January 21, 2007, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
For more information about the case, its claims, and your rights, please contact Schatz Nobel Izard P.C. toll-free at (800) 797-5499, or by e-mail at [email protected] To view a copy of the complaint filed by Schatz Nobel Izard P.C. or for more information about class action cases and Schatz Nobel Izard, please visit our website: www.snilaw.com.
CONTACT: Schatz Nobel Izard P.C.
Nancy A. Kulesa
Wayne T. Boulton