Lerach Coughlin Stoia Geller Rudman & Robbins LLP Files Class Action Suit against Technical Olympic USA, Inc.

  
    
  
  
    
      Lerach Coughlin Stoia Geller Rudman & Robbins LLP (“Lerach 
      Coughlin”) (http://www.lerachlaw.com/cases/toa/) 
      today announced that a class action lawsuit has been commenced in the 
      United States District Court for the Southern District of Florida on 
      behalf of purchasers of Technical Olympic USA, Inc. (“Technical 
      Olympic” or the “Company”) 
      (NYSE:TOA) common stock during the period between August 1, 2005 and 
      November 6, 2006, inclusive (the “Class Period”).
    
    
      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 [e-mail]. 
      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/toa/. 
      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 Technical Olympic and certain of its officers and 
      directors with violations of the Securities Exchange Act of 1934. 
      Technical Olympic, based in Hollywood, Florida, engages in the design, 
      building, and marketing of single-family residences, town homes, and 
      condominiums in the United States.
    
    
      According to the complaint, at the start of the Class Period, Technical 
      Olympic issued a press release announcing that, through a joint venture, 
      it had completed the acquisition of the homebuilding assets and 
      operations of Transeastern Properties, Inc. The press release further 
      stated that the joint venture was funded with debt provided by Deutsche 
      Bank, among others, and was non-recourse to Technical Olympic. The 
      Company also issued multiple press releases throughout the Class Period 
      describing the financial contribution made, and expected to be made, by 
      the Transeastern Joint Venture to Technical Olympic’s 
      overall financial performance.
    
    
      As alleged in the complaint, these statements were materially false and 
      misleading because defendants knew, but did not disclose: (i) that the 
      Company’s exposure to the Transeastern Joint 
      Venture’s debt was not “non-recourse” 
      and that, under certain circumstances, the Company would be liable for 
      the debt of the joint venture; and (ii) that the Transeastern Joint 
      Venture was experiencing a severe slowdown that would likely result in 
      the loss of the Company’s investment in the 
      joint venture and any loans or receivables that were owed to it.
    
    
      After the close of the market on November 6, 2006, the Company disclosed – 
      for the first time – in a filing with the 
      United States Securities and Exchange Commission that the Company faced 
      exposure for the full repayment of the loans of the Transeastern Joint 
      Venture in the event the Joint Venture voluntarily filed for bankruptcy 
      protection. Then, the next day, the Company disclosed that one of the 
      lenders to the joint venture had made a demand on the Company in 
      connection with the debt of the joint venture, causing the Company’s 
      stock price to decline further.
    
    
      Plaintiff seeks to recover damages on behalf of all purchasers of 
      Technical Olympic common stock during the Class Period (the “Class”). 
      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, 
      Philadelphia and Seattle, 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 $20 billion 
      in aggregate recoveries. The Lerach Coughlin Web site (http://www.lerachlaw.com) 
      has more information about the firm.