NEW YORK, Jan. 18, 2006 (PRIMEZONE) -- Labaton Sucharow & Rudoff LLP has filed a class action lawsuit in the United States District Court for the Central District of California, on behalf of persons who purchased or otherwise acquired publicly traded securities of Impac Mortgage Holdings, Inc. ("Impac" or the "Company") (NYSE:IMH) between May 13, 2005 and August 9, 2005, inclusive, (the "Class Period"). The lawsuit was filed against Impac and certain officers and directors ("Defendants") of the Company.
If you are a member of this class you can view a copy of the complaint and join this class action online at http://www.labaton.com/get/?case=Impac
The complaint alleges that Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. Specifically, the complaint alleges that the Company failed to disclose or misrepresented the following material adverse facts which were known to Defendants or recklessly disregarded by them:
-- The Company's margins were negatively impacted by the rise
in short-term interest rates. As a result, Impac would not
be able to sustain its dividend payouts;
-- The Company lacked adequate internal controls;
-- The Company's statements with respect to its financial
condition and future prospects lacked any reasonable basis
when made.
On August 9, 2005, Impac announced that it had posted a net loss of $55 million, or $(0.78) per share, versus a profit of $143.2 million or $2.17 per share. The Company also announced that it had now forecasted a cut in its dividend from $0.75 per share to $0.50 to $0.60 per share in the third quarter. In reaction to this news, shares of Impac fell $2.39 per share, or 14.6% on August 10, 2005, to close at $13.98 per share.
Plaintiffs are represented by the law firm of Labaton Sucharow & Rudoff LLP. Labaton Sucharow is one of the country's premier national law firms that represent individual and institutional investors in class action, complex securities and corporate governance litigation. The firm has been a champion of investor rights for over 40 years and has been recognized for its reputation for excellence by the courts.
If you bought Impac securities between May 13, 2005 and August 9, 2005, inclusive, you may qualify to serve as Lead Plaintiff. Lead Plaintiff papers must be filed with the court no later than March 13, 2006. If you would like to consider serving as lead plaintiff or have any questions about the lawsuit, please contact one of our representatives or Christopher Keller, Esq. at 800-321-0476.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.