Monday, March 19, 2007 5:54:19 PM
1.- Accredited Home Lenders Holding Company
===========================================
Ticker Symbol: LEND
Market: NASDAQ
-------------------------------------------
Class Period: 11/01/2005 - 03/12/2007
Court: S.D. California
Date of filing: 03/16/2007
Plaintiff Firm: Lerach Coughlin Stoia Geller Rudman & Robbins LLP (San Diego)
SIC Code: 6162
Sector Classification: Financial
Industry Classification: Consumer Financial Services
-------------------------------------------
Summary: According to a press release dated March 16, 2007, the complaint charges Accredited and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Accredited operates as a mortgage banking company in the United States and Canada.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company's business and financial results. As a result of defendants' false statements, Accredited stock traded at artificially inflated prices during the Class Period, reaching a high of $58.45 per share on May 11, 2006.
On February 14, 2007, the Company issued a press release announcing disappointing profitability. Then, on March 12, 2007, after the market closed, the Company issued a press release announcing that the Company was exploring various strategic options. The Company reported that it had paid approximately $190 million in margin calls on its facilities since January 1, 2007. In addition, Accredited was seeking waivers and extensions of waivers of certain financial and operating covenants under its warehouse and repurchase facilities. On March 13, 2007, Accredited's stock collapsed $7.43 per share to close at $3.97 per share, a one-day decline of 65% on volume of 41.9 million shares, 20 times the average three-month volume.
According to the complaint, the true facts, which were known by the defendants but concealed from the investing public during the Class Period, were as follows: (a) the Company lacked requisite internal controls, and, as a result, the Company's projections and reported results issued during the Class Period were based upon defective assumptions and/or manipulated facts; (b) the Company's financial statements were materially misstated due to its failure to properly account for its allowance for loan repurchase losses; (c) given the deterioration and the increased volatility in the sub-prime market, the Company would be forced to tighten its underwriting guidelines which would have a direct material negative impact on its loan productions going forward; and (d) given the increased volatility in the sub-prime market, the Company had no reasonable basis to make projections about its 2007 results. As a result, the Company's projections issued during the Class Period about its 2007 results were at a minimum reckless. As a result of defendants' false statements, Accredited's stock price traded at inflated levels during the Class Period. However, after the above revelations seeped into the market, the Company's shares were hammered by massive sales, sending them down more than 65% from their Class Period high.
Recent LEND News
- Sancus Lending Group Limited Interim Results • RNS Regulatory News • 09/17/2024 06:00:06 AM
- Sancus Lending Group Limited Result of AGM • RNS Regulatory News • 08/16/2024 09:36:00 AM
- Sancus Lending Group Limited Notice of Annual General Meeting • RNS Regulatory News • 07/30/2024 06:35:17 AM
- Sancus Lending Group Limited Director/PDMR Shareholding • RNS Regulatory News • 07/09/2024 10:35:49 AM
- Sancus Lending Group Limited Lifting of Suspension of ZDP Shares • RNS Regulatory News • 07/05/2024 06:43:47 AM
- Sancus Lending Group Limited Director/PDMR Shareholding • RNS Regulatory News • 07/04/2024 03:35:25 PM
- AssetCo proposes name change; i(x) Net Zero eyes AIM exit • Alliance News • 07/03/2024 12:48:03 PM
- Sancus Lending Group Limited Final Results for the year ended 31 December 2023 • RNS Regulatory News • 06/28/2024 02:22:06 PM
- Sancus Lending Group Limited Change of Auditor • RNS Regulatory News • 05/17/2024 06:00:09 AM
- Official List Suspension - Sancus Lending Group Limited • RNS Regulatory News • 05/01/2024 06:30:00 AM
- Sancus Lending Group Limited Transaction in Own Shares – Correction • RNS Regulatory News • 04/30/2024 09:02:18 AM
- Sancus Lending Group Limited Transaction in Own Shares & Total Voting Rights • RNS Regulatory News • 04/30/2024 06:00:12 AM
- Sancus Lending Group Limited ZDP Share Buyback • RNS Regulatory News • 04/29/2024 06:00:09 AM
- Facilities by ADF profit hit by Hollywood strikes • Alliance News • 04/26/2024 07:02:38 PM
- Sancus Lending Group Limited Temporary Suspension of ZDP Shares • RNS Regulatory News • 04/26/2024 11:06:35 AM
- ActiveOps sales up; Sancus turnover jumps • Alliance News • 04/24/2024 03:04:43 PM
- Sancus Lending Group Limited Trading Update and Capital Strengthening • RNS Regulatory News • 04/24/2024 06:00:11 AM
- Spectris adds former Spirax CEO Anderson to board • Alliance News • 03/28/2024 01:46:52 PM
- Sancus Lending Group Limited Board and Executive Changes • RNS Regulatory News • 03/28/2024 07:00:15 AM
- Sancus Lending Group Limited Director/PDMR Shareholding • UK Regulatory • 12/07/2023 07:00:00 AM
- Sancus Lending Group Limited Long Term Incentive Plan Awards • UK Regulatory • 12/06/2023 07:00:00 AM
- Velocys agrees bid, Helical lets office to Sainsbury • Alliance News • 12/05/2023 05:54:35 PM
- Sancus Lending Group Limited Strategic Joint Venture • UK Regulatory • 12/05/2023 07:00:00 AM
- Sancus Lending Group Limited Change of Registered Office • UK Regulatory • 11/02/2023 02:23:00 PM
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM
Element79 Gold Corp. Appoints Kevin Arias as Advisor to the Board of Directors, Strengthening Strategic Leadership • ELMGF • Sep 18, 2024 10:29 AM
Mawson Finland Limited Further Expands the Known Mineralized Zones at Rajapalot: Palokas step-out drills 7 metres @ 9.1 g/t gold & 706 ppm cobalt • MFL • Sep 17, 2024 9:02 AM
PickleJar Announces Integration With OptCulture to Deliver Holistic Fan Experiences at Venue Point of Sale • PKLE • Sep 17, 2024 8:00 AM