Berger & Montague, P.C. Announces That It Has Commenced a Securities Class Action Against Luminent
12 Septiembre 2007 - 9:02AM
PR Newswire (US)
PHILADELPHIA, Sept. 12 /PRNewswire/ -- The law firm Berger &
Montague, P.C. announces that it has commenced a securities class
action in the United States District Court for the Northern
District of California, on behalf of purchasers of the common stock
of Luminent Mortgage Capital, Inc. (NYSE:LUM) "Luminent" or the
"Company" from October 10, 2006 through August 6, 2007, inclusive
(the "Class Period"). The Complaint charges Luminent and certain of
its officers and directors with violations of the Securities
Exchange Act of 1934. Luminent is a real estate investment trust
that invests primarily in the United States agency and in other
single-family, adjustable-rate, hybrid adjustable-rate and fixed-
rate, mortgage-backed securities which it acquires in the secondary
market. 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's investments were not
"high quality" as previously represented; 2) that the Company had
failed to employ a disciplined and sophisticated hedging program
for the interest rate and credit risks in its portfolio; 3) as
such, the Company would be unable to maintain its regular dividend
payment to shareholders going forward; 4) that the Company lacked
adequate internal and financial controls; and 5) that, as a result
of the above, the Company's statements about its financial
well-being and future business prospects were lacking in a
reasonable basis when made. The Company shocked investors on August
6, 2007 when it announced it had experienced a significant increase
in margin calls on its "highest quality assets," as well as a
decrease on the financing advance rates provided by its lenders. As
a result, the Company's Board of Directors suspended payment of the
Company's second quarter cash dividends of $0.32 per share,
cancelled the Company's second quarter 2007 earnings conference
call scheduled for August 9, 2007 and stated that it would delay
filing the Company's quarterly report with the SEC. On news of
this, Luminent's shares fell $3.30, or over 75 percent, to close on
August 7, 2007 at $1.08 per share. Then on August 7, 2007, the
Company attempted to assure investors that it was "moving forward
with its efforts to enhance its liquidity and preserve the value of
its portfolio of its assets which is comprised substantially of
high quality mortgage loans." Therein, the Company again stated
that it had experienced a significant increase in margin calls on
its "highest quality assets," as well as decrease on the financing
advance rates provided by its lenders. On news of this, shares of
Luminent fell again to close on August 8, 2007 at $0.95 per share,
on unusually heavy trading volume. If you purchased Luminent
securities during the Class Period, you may, no later than October
9, 2007 move to be appointed as a Lead Plaintiff in this class
action. A Lead Plaintiff is a representative, chosen by the Court,
that acts on behalf of other class members in directing the
litigation. The Private Securities Litigation Reform Act of 1995
directs Courts to assume that the class member(s) with the "largest
financial interest" in the outcome of the case will best serve the
class in this capacity. Courts have discretion in determining which
class member(s) have the "largest financial interest," and have
appointed Lead Plaintiffs with substantial losses in both absolute
terms and as a percentage of their net worth. Berger &
Montague, P.C. is a Philadelphia law firm with 70 attorneys, all of
whom have represented plaintiffs in complex litigation. The Berger
firm has extensive experience representing plaintiffs in class
actions securities litigation and has played lead roles in major
cases for over 25 years. The standing of Berger & Montague,
P.C. in successfully conducting major securities litigation has
been recognized by courts nationwide. If you purchased Luminent
securities during the Class Period, please visit our website at
http://www.bergermontague.com/ to view the complaint. Please
contact: Arthur Stock, Esquire Kimberly A. Walker, Investor
Relations Manager Berger & Montague, P.C. 1622 Locust Street
Philadelphia, PA 19103 (888) 891-2289 - phone (215) 875-5715 - fax
DATASOURCE: Berger & Montague, P.C. CONTACT: Arthur Stock,
Esquire, or Kimberly A. Walker, Investor Relations Manager of
Berger & Montague, P.C., +1-888-891-2289, Web site:
http://www.bergermontague.com/
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