Shareholder Class Action Filed Against Accredited Home Lenders Holding Co. by The Law Firm of Schiffrin Barroway Topaz & Kessler
22 Marzo 2007 - 4:12PM
PR Newswire (US)
RADNOR, Pa., March 22 /PRNewswire/ -- The following statement was
issued today by the law firm of Schiffrin Barroway Topaz &
Kessler, LLP: Notice is hereby given that a class action lawsuit
was filed in the United States District Court for the Southern
District of California on behalf of all common stock purchasers of
Accredited Home Lenders Holding Co. (NASDAQ:LEND) ("Accredited" or
the "Company") from November 1, 2005 and March 12, 2007, inclusive
(the "Class Period"). If you wish to discuss this action or have
any questions concerning this notice or your rights or interests
with respect to these matters, please contact Schiffrin Barroway
Topaz & Kessler, LLP (Darren J. Check, Esq. or Richard A.
Maniskas, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or
via e-mail at . The Complaint charges Accredited and certain of its
officers and directors with violations of the Securities Exchange
Act of 1934. More specifically, the Complaint alleges that the
Company failed to disclose and misrepresented the following
material adverse facts which were known to defendants or recklessly
disregarded by them: (1) that the Company was improperly accounting
for loan losses as conditions in the sub-prime industry
deteriorated; (2) that as such, the Company's financial statements
were materially misstated; (3) that the Company's underwriting
guidelines were not adequately restrictive for borrowers in the
sub-prime loan market; (4) that Accredited would be forced to
further tighten its underwriting guidelines which would have a
material impact on its future loan productions; (5) that the
Company was operating without effective risk management policies
and procedures in place; (6) that Accredited lacked adequate
internal and financial controls; and (7) that, as a result of the
above, the Company's statements about its financial well-being and
future business prospects were lacking in any reasonable basis when
made. On February 14, 2007, Accredited reported the Company's
financial and operating results for the fourth quarter and year
ended December 31, 2006. The Company reported net income of $57.7
million for the year and "strong liquidity" of $345 million. Less
than one month after the announcement of February 14, 2007, on
March 12, 2007, Accredited shocked investors when the Company
revealed that its cash recourses had effectively been depleted, and
that the Company was now forced to explore strategic options for
continued survival. The Company further revealed for the first time
it had been forced to pay approximately $190 million in margin
calls since January 1, 2007, one-third of which had been received
prior to the Company's February 14, 2007 announcement. Due to the
Company's now precarious financial position, Accredited further
revealed that it was forced to seek financial waivers and
extensions of the covenants it had made with its financial lenders.
In reaction to the Company's shocking news, market analysts
predicted that Accredited could face liquidation, and that
bankruptcy was now a serious possibility for the Company. On the
release of this shocking news, shares of the Company's stock
declined $7.43 per share, or 65 percent, to close on March 13, 2007
at $3.97 per share, on unusually heavy trading volume. Plaintiff
seeks to recover damages on behalf of class members and is
represented by the law firm of Schiffrin Barroway Topaz &
Kessler which prosecutes class actions in both state and federal
courts throughout the country. Schiffrin Barroway Topaz &
Kessler is a driving force behind corporate governance reform, and
has recovered billions of dollars on behalf of institutional and
individual investors from the United States and around the world.
For more information about Schiffrin Barroway Topaz & Kessler
or to sign up to participate in this action online, please visit
http://www.sbtklaw.com/ If you are a member of the class described
above, you may, not later than May 15, 2007, move the Court to
serve as lead plaintiff of the class, if you so choose. A lead
plaintiff is a representative party that acts on behalf of other
class members in directing the litigation. In order to be appointed
lead plaintiff, the Court must determine that the class member's
claim is typical of the claims of other class members, and that the
class member will adequately represent the class. Under certain
circumstances, one or more class members may together serve as
"lead plaintiff." Your ability to share in any recovery is not,
however, affected by the decision whether or not to serve as a lead
plaintiff. You may retain Schiffrin Barroway Topaz & Kessler or
other counsel of your choice, to serve as your counsel in this
action. CONTACT: Schiffrin Barroway Topaz & Kessler, LLP Darren
J. Check, Esq. Richard A. Maniskas, Esq. 280 King of Prussia Road
Radnor, PA 19087 1-888-299-7706 (toll free) or 1-610-667-7706 Or by
e-mail at DATASOURCE: Schiffrin Barroway Topaz & Kessler, LLP
CONTACT: Darren J. Check, Esq., or Richard A. Maniskas, Esq., both
of Schiffrin Barroway Topaz & Kessler, LLP, +1-888-299-7706 or
+1-610-667-7706, or Web site: http://www.sbtklaw.com/
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