Luminent Mortgage Capital, Inc. (fka LUMCQ)

[I-Man]

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 [e-mail] or David Harrison at [e-mail]

SOURCE: Lowey Dannenberg Cohen and Hart, P.C.

Lowey Dannenberg Cohen & Hart, P.C. Barbara Hart, 914-997-0500 [e-mail] or David Harrison, 914-997-0500 [e-mail]