AmeriHome (NYSE:AHM)
Historical Stock Chart
From May 2019 to May 2024
Lerach Coughlin Stoia Geller Rudman & Robbins LLP (“Lerach
Coughlin”) (http://www.lerachlaw.com/cases/americanhome/)
today announced that a class action lawsuit has been commenced in the
United States District Court for the Eastern District of New York on
behalf of purchasers of the securities of American Home Mortgage
Investment Corp. (“American Home Mortgage”
or the “Company”)
(NYSE:AHM) between July 26, 2006 and July 27, 2007, inclusive (the “Class
Period”), seeking to pursue remedies under the
Securities Exchange Act of 1934 (the “Exchange
Act”).
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 wsl@lerachlaw.com.
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/americanhome/.
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 American Home Mortgage and certain of its officers
and directors with violations of the Exchange Act. American Home
Mortgage is a real estate investment trust (REIT), which engages in the
investment and origination of residential mortgage loans in the United
States. The Company primarily originates and sells securitized
adjustable-rate mortgage loans, as well as engages in the sale of
mortgage loans to institutional investors and servicing mortgage loans
owned by others.
According to the complaint, during the Class Period, defendants issued
materially false and misleading statements that misrepresented and
failed to disclose that: (i) the Company was experiencing an increasing
level of loan delinquencies which was depressing its earnings; (ii) that
the Company was experiencing increasing difficulties in selling its
loans and, therefore, was required to decrease prices, thereby reducing
margins and profits; and (iii) as a result of the foregoing, the Company
was overstating its financial results by failing to write-down the value
of certain of the loans in its portfolio as these loans had declined
substantially in value.
Then, on June 28, 2007, American Home Mortgage issued a press release
announcing that it will take “substantial
charges for credit-related expenses in the second quarter.”
The Company reported that the increase in losses was related to its
practice of extending a three month timely payment warranty that the
Company granted to loan buyers who purchased stated income loans. In
response to this announcement, the price of American Home Mortgage stock
declined from $20.91 per share to $18.38 per share on extremely heavy
trading volume. Then, on July 27, 2007, after the close of the market,
American Home Mortgage issued a press release announcing that its Board
of Directors had determined to delay paying its dividend. In response to
this announcement, on July 30, 2007, the NYSE halted trading in American
Home Mortgage stock before the market opened.
Plaintiff seeks to recover damages on behalf of all those who purchased
the behalf of purchasers of the securities of American Home
Mortgage between July 26, 2006 and July 27, 2007, inclusive. 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,
and Philadelphia, 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 $45 billion in
aggregate recoveries. The Lerach Coughlin Web site (http://www.lerachlaw.com)
has more information about the firm.