HARTFORD, Conn., March 17, 2006 (PRIMEZONE) -- The law firm of Schatz & Nobel, P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the District of New Jersey on behalf of all persons who purchased or otherwise acquired the publicly traded securities of PHH Corporation ("PHH" or the "Company") (NYSE:PHH) between May 12, 2005 and March 1, 2006, inclusive (the "Class Period").
The Complaint alleges that defendants violated federal securities laws by issuing a series of materially false statements. Specifically, defendants failed to disclose the following facts: (i) that PHH materially overstated its deferred tax assets, by tens of millions of dollars; (ii) that the Company's reported net income was materially overstated; (iii) that the Company's internal controls over financial reporting had material weaknesses, were not effective and adversely affected the Company's ability to record, process, summarize and report financial data; and (iv) as a result of the foregoing, the Company's reported results were materially inflated.
On March 1, 2006, PHH issued a press release revealing that the Company's reported results were materially overstated, for the reasons discussed above, and that an ongoing accounting review would prevent it from timely filing with the SEC its annual report on Form 10-K. The Company also announced that it had replaced its Chief Financial Officer. On this news, the price of PHH common stock dropped from $28.73 per share on March 1, 2006 to $26 per share on March 2, 2006.
If you are a member of the class, you may, no later than May 16, 2006, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz & Nobel has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz & Nobel toll-free at (800) 797-5499, or by e-mail at sn06106@aol.com, or visit our website: www.snlaw.net.