LOS ANGELES, May 17, 2005 (PRIMEZONE) -- Notice is hereby given by Glancy Binkow & Goldberg LLP that a Class Action lawsuit was filed in the United States District Court for the Southern District of New York on behalf of a class (the "Class") consisting of all persons or entities who purchased or otherwise acquired securities of Friedman, Billings, Ramsey Group, Inc. ("FBR" or the "Company") (NYSE:FBR) during the period January 29, 2003 through April 25, 2005 (the "Class Period").
A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or obtain a copy of the Complaint at (310) 201-9150 or Toll Free at (888) 773-9224, by email at info@glancylaw.com, or visit our website at www.glancylaw.com.
The Complaint charges FBR and certain of the Company's executive officers with violations of federal securities laws. FBR is an investment bank that provides investment banking, institutional brokerage and asset management services, and invests as principal in mortgage-backed securities and merchant banking investments. Plaintiff claims defendants' omissions and material misrepresentations concerning the Company's operations and financial performance artificially inflated the Company's stock price, inflicting damages on investors. The Complaint alleges that during the Class Period, defendants knew or recklessly disregarded and failed to disclose material adverse facts, including that: (1) the Company was being negatively impacted by its role as a placement agent for an insurer in a "Private Investment In Public Equity" (PIPE) transaction in 2001; (2) as a result of the 2001 transaction, the Company was forced to take $7.5 million dollar charge, which adversely affected FBR's earnings; and (3) the Company's earnings were being adversely impacted by interest rate increases.
On November 9, 2004, FBR filed its third quarter 2004 Form 10-Q in which it disclosed an SEC and National Association of Securities Dealers (NASD) investigation concerning FBR's role in 2001 as a placement agent for an issuer in a PIPE transaction. On April 4, 2005, CEO Emanuel J. Friedman resigned. Then, on April 25, 2005, after the market closed, FBR announced disappointing preliminary financial results for first quarter 2005, including a charge for its liability in the PIPE transaction. This news shocked the market, sending FBR shares down 13 percent, or $1.87 per share, to close at $12.52 per share on April 26, 2005.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.
If you are a member of the Class described above, you may move the Court, not later than July 11, 2005, to serve as lead plaintiff, however, you must meet certain legal requirements. 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 Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150, Toll Free at (888) 773-9224, or by e-mail to info@glancylaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.