Class Action to see compensation to common shareholders!
Lowey Dannenberg Cohen and Hart, P.C. ("Lowey Dannenberg") announces that on April 29, 2009, Judge Phyllis J. Hamilton gave final approval to the $8,000,000 settlement of a securities class action on behalf of a class of investors in Luminent Mortgage Capital, Inc. ("Luminent" or the "Company") common stock and options during the period February 9. 2007 through August 6, 2007 (the "Class Period").
Lead Counsel Lowey Dannenberg represented Lead Plaintiff Southern Investment Company on behalf of the Class.
The settlement payment resolved claims that Luminent senior officers, which invested in mortgage-backed securities and mortgage loans, falsely represented Luminent's ample liquidity, exposure to subprime debt and the safety of its upcoming dividend payment. These bullish representations were alleged to have invited investors' confidence just weeks before the Company disclosed a credit crisis and suspended its dividend in early August 2007, which resulted in an immediate 85% decline in the value of its stock. Luminent subsequently filed for Chapter 11 protection.
In approving the settlement Judge Hamilton praised the recovery as "excellent" particularly in light of the bankruptcy, observing that the Class response reflected that it was an "extraordinary" outcome.
Barbara Hart, head of Lowey Dannenberg's Securities Litigation practice observed, "the Lowey team had to work effectively with industry experts to analyze the intricacies of the mortgage back securities at issue and to untether the Class' recovery from the bankruptcy process for the benefit of the shareholders. Partner David Harrison, the principal litigator on the matter observed, "the result is about 17% of damages, a tremendous result for the shareholders. Luminent class members should file claims now because I'm proud to say there is real money available to compensate for their losses."
Lowey Dannenberg is one of the preeminent plaintiffs' class action law firms in the country (www.lowey.com).
For more information, contact Barbara Hart at Bhart@lowey.com or David Harrison at Dharrison@lowey.com
SOURCE: Lowey Dannenberg Cohen and Hart, P.C.
Lowey Dannenberg Cohen & Hart, P.C. Barbara Hart, 914-997-0500 Bhart@lowey.com or David Harrison, 914-997-0500 Dharrison@lowey.com
Started to move, market cap went near $600K then someone shorted small amount to 1 cent again...
If the small people stop shorting this as soon as any volume attempts to return, its market cap increases on volume increase and if let alone, may perhaps enccourage larger buyers over time and actually see this stock regain some price loss and become respectable again!
Australia already has halted any short selling of bank stocks for 3rd time because of the sheer devastation and panic spreading to other equity indices which are in good shape, so perhaps the US Govt. will take heed to this and do the same to eliminate so damn much negativity everywhere and why foreign investors are refusing to step back in with their $$.
Something to ponder with LUM;;
With mortage rates now at literally all time lows, and Fed rate at all time low, could there be something within this managerie of LUM and ARCO and the legal fiasco that could inevitably see the whole portfolio valuation change to the upside to where it alters the initial expected outcome of this company??
Because what gets me is seeing so much trading activity still on this stock, and I mean some days of unbelievable high volume, and this all is not normal for a supposed dead corp...
But then again, nothing these days amazes me.
Amazing times for sure, but what is enticing to see, is actual trade volume for this corp even at the worst possible time in all of US history & considering global markets; this may signal something special actually occurring into next year for any who still hold and are invested in these shares... Anything is possible and can happen as many recent events have shown.. Call it magical, but anything is possible is all I am saying.
As after 1929 it was the small caps non marketed heavily then that later became the future mega winners for those who invested into them and simply had patience..
.75% interest rate cut by Feds should have some impact for companies with loans on the book, as though banks are not generally lending new monies out still, they are trying to refinance everything on the books with existing homeowners, and this event could benefit LUM and many others in time in all honestly as you creatively erase a lot of "supposed" debt off the books (increasing bottom lines) by basically seeing the banks willing to lend at lower % rate than before but yet the loans still good and being serviced by borrowers and loan balances reduced substantially........
We will have to see.
LUMCQ active still and I guess anything is possible today especially after the Bernie Madoff incident just came out- so even what was deemed the best and most secured on Wall Street proved to be a fraud, so why not can't LUM begin to shine again?
You never know.
LOL The way I see it, if WaMu and all the press it received after the fraud and scheme structure was revealed by its management and its bad practices took it to nothing and dead (hurting many sharegholders in process), then all of a sudden resurrected like Christ and back to TV ads again, anything is possible longer term for even LUM stock...
Nice little MM shake & Bake here this am!
Told you weird things going on with LUM stock...
Today 2.13M volume!!?? Price moving up now!!??
About as weird at Wamu supposedly gone from sight forever broken & battered and out of money, then suddenly reappearing today on TV, with Wamu adds running again saying they are part of Chase Bank!!??
More Yahoo: by frtgrdn21
Interesting perspective 3-Nov-08 09:28 am Like I posted earlier, do you think this is an agreement the Subs and unsecured debt holder will agree too?
The main unsecured creditors included Duane Morris LLP, Greenwich Capital Financial Products, Inc., HSBC Securities USA Inc., JPMorgan ... Chase Bank, NA, Merrill Lynch & Co., Inc., SS&C Technologies Holdings Inc., Street Solutions, Inc., WaMu Capital Corp, Wells Fargo & Company, and Wilmington Trust Company. Official Committee of Unsecured Creditors is being represented Jeffrey Neil Rothleder of Arent Fox LLP.
Under the plan (Which ARCO and LUM first came up with and petitioned the court with), Arco Capital Corp. would swap $28.88 million in secured debt for 51% of the equity in a reorganized Luminent. The unsecured creditors, which are owed a total of $209.72 million, including the holders of $90 million in convertible notes, would get a 41% stake in the reorganized company. The remaining 8% of Luminent's stock would be distributed to certain company executives. The plan does not mention Arco's distributions or the recoveries of unsecured creditors. Convenience claim, which are owed $2.3 million, would recover 13% on their claim. All other claims, including more than $90 million in junior subordinated notes, will be wiped out. Arco will also provide the company with $7.35 million. The exit finance would be used to refinance $3.24 million DIP and to pay $0.30 million to small trade creditors and $1 million for federal tax claims. Rating :
More Yahoo info: by frtgrdn21
Arco is a huge company and has billions. It is likely that someone in the lower/regional management for ARCO initiated this "partnership" with LUM.
What likely happened; Someone working in ARCO's investment division thought LUM common stock was a good investment. Spent $10+ mil buying common and then the stock price collapsed. Then they decided to recoup their money by giving LUM a $28 mil loan for 49% of the company in form of warrants. Then housing market deteriorates further and their money (loan) was also gone. LUM defaults left and right. ARCO has only one way to recover their cash and that is through this pre-arranged BK. If common, unsubs and subs get wiped out in court, they steal the company and recover their investment loses (plus some). Unfortunatly, the sub-debt holders are not rolling over and disappearing.
Now someone in ARCO's top managment got an idea of what can happen and wants out. ARCO can be on the hook for a lot more then the $40 or so million that they already flushed down the toilet with this company. ARCO promised $400k to help with the reorganization and another $17 mil. credit afterwards, hense the new hiring by LUM before the BK of two highly touted money managers. They don't want to put another dime into this black hole of a company, but the judge is making them. This is kind of funny if you think about it.
Yahoo Board Info, Interesting perspective
I was having lunch with my friend last week and he is a civil lawyer. So we were talking about the stock market. He, like many others, took a hit in his 401k and several other funds he held (college funds for kids, etc.). So he was interested in the speculation stocks I held. He wasn't very interested in the bio-techs, but he was very interested in this one. After doing his own DD, through his legal avenues (he has several paralegals doing the legwork of the research) he came up with an interesting theory. And also took in around 500k shares over the last week to make it interesting.
The "dirty hands" charges, the sub lawyers brought up against LUM and ARCO are VERY serious. Much more serious than I thought. The court system works through precedence. There is precedence in similiar cases, where if the judge finds that these charges are valid, the sub lawyers will be able to go after ARCO directly. They can go after LUM management, but they don't have much. Arco is a company with very deep pockets.
So ARCO, who already lost $10+ million in stock value, is in danger of losing the $28 million that they loaned LUM (to cover margin calls as I remember) and could be further liable for part of the $300+ million that is owed to the Sub-debt holders. There is a further chance that case will be reviewed by Justice Dept and criminal charges will follow. These lawyers, the sub's hired, are no joke. This law firm is also used by some large institutional investors to lobby congress and senate.
Now, my friend specializes in civil law, not corporate law. So not sure how much water his theory holds. But now we have an interesting subject to talk about, since we both hold common in this company.
Do you have the BK case number?
From Yahoo Board, intersting info
Re: Arco on the Run 20-Nov-08 10:49 am You are right and could be a lot more. Here is the key date and hearing:
Matter Set for Previously Scheduled Hearing On (related document(s) 239 Expedited Motion of the Official Committee of Unsecured Creditors for Entry of an Order Granting Leave, Standing and Authority to Investigate and Prosecute Causes of Action Against Arco and its Affiliates on Behalf of the Committee, Debtors and Debtors Estates filed by Creditor Committee Official Committee of Unsecured Creditors, 266 Objection filed by Creditor Arco Capital Corporation Ltd., 276 Objection filed by Debtor Luminent Mortgage Capital, Inc.). Hearing scheduled for 12/16/2008 at 10:00 AM at Courtroom 1-B, Baltimore - Judge Keir. (Burkhart, M) (Entered: 11/18/2008)
It might open up Arco to liability damages which will be huge for us (common) and sub/unsub debt holders.
yup,L2 looks very thin!
LUMCQ 0.04- 0.05 now
Harley, appreciate the info you have provided on the yahoo board which I copied and pasted over here for our pool of investors to go over, I also had the privilage of giving you your 1st member mark! Please keep us posted, I think you will find this forum very open and useful, seems yahoo is littered with bs!
Was just trying to get all the DD you had over there here, great work, if I can assist in any way let me know as I have extensive DD tools and know how!
L2 ask spankage
I think it is good you are spreading the word - but for this message board to be really effective try to post some original content instead of just "cloning" all the posts from the Yahoo Luminent message board. I am flattered my posts are here - not so much that you have posted them as yours.
This is a post originally posted by me on the Yahoo Luminent message board and copied here and posted by Widespread Panic.
Glad you found your way over here, I did ponit out the info I was posting came from Yahoo board, I appologize if there was any misinterpritation!
Hello. Thanks for including this info I posted on the Yahoo Luminent message board. I am glad you are spreading the word - however you should not post these as your own - but say something like "this is a post I copied from the Yahoo board by so and so" Thanks.
Yes, there is trading volume and has been for this stock.
Bankruptcy is not an end but a reorganization of business operations. However with this corp and its management, they are the problem, and should something take a new turn of events, this stock could actually get more recognition again and perform on the market at a higher price.
It has not gone, and it still is being traded daily.. I have been watching this for a long time and still a shareholder too. Just "weird" things have been going on and I'd like to know what the Board is or has been doing like many others...??
I have a question. Are the shares we still hold worth something? They are still showing in my accounts. One account down about 90% and the other account actually went to profit today.
This is the BK Judge name. 08-21389 is the BK case number. Next hearing is 11-19-08. Go to this link http://www.mdb.uscourts.gov/RL_HrgDates.... Select Judges then court calendar and put in the case number at the bottom. Be sure to select Kier for the Judge. This will give you the next hearing date. For what it is worth.
200DMA at .25, link back to previous post for chart
Re: Why the Big Move today? There was a motion in court today. Something must have happened and info could have leaked out. I was busy with my business today so I didn't have a chance to find out. But I am pleasantly surprised. ARCO could be trying to buy out all the shares on the open market, because they might think there is value here and the judge might have indicated that he might be leaning towards throwing out the case. Looks like my lawyer friend made out, he bought close 1/2 mil shares under a penny. I'm up as well.
Some other Luminent Execs 16-Nov-08 08:34 am Barry D Weiss, Senior Vice President and Chief Investment Officer,
LUMINENT MORTGAGE CAPITAL, INC.
Eric Richter, Portfolio Manager/Vice President,
LUMINENT MORTGAGE CAPITAL, INC.
Shuwei Ma, Assistant Portfolio Manager, Structurer,
LUMINENT MORTGAGE CAPITAL, INC.
Got these names off an "attendee" list for a conference in Las Vegas held Sept 17-18 2008 at the Four Seasons hotel. The conference was titled "Distressed Debt Investing and Risk Management - Navigating the Post-Subprime World". I guess with regards to Luminent navigation means setting the Garmin to Las Vegas and shouting excitedly "Road Trip" who's in!!. Naturally none of the Luminent attendees were featured as presentors or panelists for any of the conference sessions. Chickens! I am betting they were only the "official" attendees with many more tagging along. Navigating the Sub-Prime world hasn't been so hard for the Luminent management. Now that they don't have a pesky business to run or cranky stockholders to report to there is plenty of time for "professional development". No wonder ARCO was upset, these guys are using their money to party. Too bad I don't believe in that "What goes on in Las Vegas stays in Las Vegas" crap. What would you say to fellow conference attendees when they asked "how's business?" Oh well we are in Chapter 11 and our stock is trading at 5 one hundredths of a penney - but you know pretty good considering. Can I buy you a drink - we'll just expense it! Jeez-
From Yahoo board
As far as I see, there is no major institutional investors holding this stock. Largest holders are ARCO and LUM management, the rest are retail investors. There is no deadline for us to form a committee and join in, but right now there is no point. Their book value is still negative and there is nothing to go after. If the lawyers for the Sub's prove that the books were cooked, we can find a lawyer and form a committee. The sub's and unsub's are not going to settle for 49% of the new company, in exchange for $300+ million owned to them. They will persue any means possible to recover their money or as much as possible. We shall see soon. If this was a chapter 7 bk, then a committee representing us would be in place right now. In a liquidation process, there might be something left for the common shareholders.
Luminent Mortgage Capital, Inc.
One Commerce Square
2005 Market St.
Philadelphia, PA 19103
OTC Market Tier
Pink Sheets Limited
Primary SIC — Industry Classification
6798 - Real estate investment trusts
State Of Incorporation
Jurisdiction Of Incorporation
S. Trezevant Moore, Jr., President, CEO
Karen Chang, Senior Vice President, CFO
SEC Reporting Status
SEC Reporting Company
Fiscal Year End
Estimated Market Cap
$216,417 as of Nov 18, 2008
43,283,339 as of Feb 29, 2008
Number of Share Holders of Record
421 as of Mar 28, 2008
New Issue=12-18-03 11,500,000 shs at $13 by Friedman Billings Ramsey et al.
BNYMellon Shareowner Services
Newport Office Center VII
Jersey City, NJ 07310-1900