NEW YORK, Jan. 28, 2004 (PRIMEZONE) -- A class action complaint has been filed in the United States District Court for the Eastern District of Pennsylvania on behalf of all persons or entities who purchased or otherwise acquired American Business Financial Services, Inc. ("ABFI" or the "Company") securities (Nasdaq:ABFI) during the period between January 27, 2000 and June 25, 2003, both dates inclusive (the "Class Period"). The Complaint names ABFI, Anthony J. Santilli, Richard Kaufman, and Albert W. Mandia as defendants.
To discuss this action, this announcement, or your rights or interests, please contact plaintiff's counsel, Eric J. Belfi or Aaron D. Patton at Rabin, Murray & Frank LLP, 275 Madison Avenue, New York, NY 10016, by telephone at (800) 497-8076 or (212) 682-1818, by facsimile at (212) 682 1892, or by e-mail at info@rabinlaw.com.
The Complaint alleges that defendants violated section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the Securities and Exchange Commission. The Complaint alleges that defendants made materially false and misleading statements concerning the Company's delinquency rate and interest income. In particular, the Complaint alleges: (1) that the Company used a deception to take homes from delinquent borrowers in order to keep its delinquency rate low; (2) that the deception allowed the Company to skip the normal foreclosure process more frequently; (3) that the deception enabled the Company to reduce its delinquency rate in its $3.6 billion loan portfolio; (4) that the Company was able to securitize more loans as result of reducing its delinquency rate in its loan portfolio; and (5) that the Company was thus able to collect interest income from its securitized loans and inflate its financial results. The Complaint alleges that as a result of these false and misleading statements and omissions of material fact the price of ABFI securities were artificially inflated throughout the Class Period causing plaintiff and the other members of the Class to suffer damages.
Plaintiff is represented by the law firm of Rabin, Murray & Frank LLP. Rabin, Murray & Frank LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States. If you purchased or otherwise acquired ABFI securities during the Class Period described above, you may, no later than March 23, 2004, move the Court to serve as lead plaintiff. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this action as a lead plaintiff online at www.rabinlaw.com. Contact plaintiff's counsel Eric J. Belfi or Aaron D. Patton of Rabin, Murray & Frank LLP to further discuss this action, this announcement, or your rights or interests.