NEW YORK, May 18, 2005 (PRIMEZONE) -- Murray, Frank & Sailer LLP has filed a class action lawsuit on behalf of shareholders who purchased or otherwise acquired the securities of Friedman, Billings, Ramsey Group, Inc. ("FBR" or the "Company") (NYSE:FBR) (Berlin:FRM) (Frankfurt:FRM) between January 29, 2003 and April 25, 2005, inclusive (the "Class Period"), seeking to pursue remedies under the Securities Exchange Act of 1934.
The Complaint charges FBR and certain of the Company's executive officers with violations of federal securities laws. Plaintiff claims defendants' omissions and material misrepresentations during the Class Period artificially inflated the Company's stock price, inflicting damages on investors. 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. The complaint alleges that during the Class Period FBR represented that it maintained an adequate system of internal financial and operational controls, including a "Chinese Wall" between its banking and brokerage divisions. Adequate internal controls to prevent the use of internal information from being used for improper purposes, such as insider trading, are a requisite for FBR's business activities, and FBR's revenues and earnings are dependent upon customers' and investors' perception that FBR maintained an adequate system of internal controls. Unbeknownst to investors, the Company did not maintain such a Chinese Wall and defendants caused FBR to engage in insider trading and the manipulation of PIPE (Private Investment in Public Equity) transactions. The truth emerged on April 26, 2005 when the Company announced disappointing preliminary results for the first quarter of 2005 and disclosed that the Company was establishing a reserve of $7.5 million for a potential settlement by the company's broker-dealer subsidiary related to an SEC investigation concerning a PIPE transaction. On this news, FBR shares fell $1.87 per share, or 13%, to close at $12.52.
Murray, Frank & Sailer 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 FBR securities on any world exchange between January 29, 2003 and April 25, 2005, and sustained damages, you may, no later than July 11, 2005, move the Court to serve as lead plaintiff. Shareholders outside the United States may also join the action, regardless of which exchange was used to purchase the securities. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this class action as lead plaintiff online at http://www.murrayfrank.com/CM/NewCases/NewCases.asp. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff's counsel Eric J. Belfi, Aaron D. Patton or Christopher S. Hinton of Murray, Frank & Sailer LLP.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.