LOS ANGELES, Jan. 20, 2006 (PRIMEZONE) -- Notice is hereby given that Glancy Binkow & Goldberg LLP has filed a Class Action lawsuit in the United States District Court for the Central District of California on behalf of a class (the "Class") consisting of all persons or entities who purchased or otherwise acquired securities of Impac Mortgage Holdings, Inc. ("Impac" or the "Company") (NYSE:IMH) between May 13, 2005 and August 9, 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 to 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 Impac and certain of the Company's executive officers with violations of federal securities laws. Among other things, plaintiff claims that defendants' material omissions and dissemination of materially false and misleading statements concerning Impac's operations and prospects caused the Company's stock price to become artificially inflated, inflicting damages on investors. Impac Mortgage Holdings, Inc. operates as a mortgage real estate investment trust (REIT), which engages in the acquisition, origination, sale, and securitization of nonconforming Alt-A mortgages. The Complaint alleges that defendants made materially false and misleading statements during the Class Period which: (a) concealed adverse facts that were known to the defendants, including that the Company was suffering from significant margin pressure because of a rise in short-term rates, and that it was unavoidable the Company would suffer tremendous losses in future quarters; (b) concealed that the Company's internal controls were not operating effectively; (c) issued opinions, projections and forecasts concerning the Company and its operations that were lacking in a reasonable basis; and (d) concealed that Company insiders were intentionally concealing or misrepresenting material adverse information to maintain artificial inflation of the stock price, so they could sell their own shares at a significant profit.
On August 9, 2005, the Company stunned the market, announcing that it would report a net loss of $55 million, or $0.78 per share, compared to the prior-year profit of $143.2 million, or $2.17 per share, and forecasting a reduced dividend of $0.50 to $0.60 per share in the third quarter. As a result of this news, Impac shares dropped approximately 40% from their Class Period high of $22.32, to close at $13.46 on August 10, 2005, on trading volume of nearly 6.5 million shares - almost 13 times greater than the average daily volume.
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 March 13, 2006, 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 or Toll Free at (888) 773-9224 or by e-mail to info@glancylaw.com.