HARTFORD, Conn., June 21, 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 Northern District of Texas on behalf of all persons who purchased or otherwise acquired the publicly traded securities of Home Solutions of America, Inc. ("Home Solutions" or the "Company") (AMEX:HOM) between April 11, 2006, and June 6, 2006, inclusive, (the "Class Period").
The Complaint alleges that defendants violated federal securities laws by issuing a series of materially false statements. Specifically, on April 11, 2006, Home Solutions announced that it had been awarded a contract valued at up to $20 million, to provide infrastructure support for Hurricane Katrina rebuilding efforts. Subsequently, Home Solutions announced a string of contract awards, including substantial contracts with Home Depot Inc. and American Renaissance Homes ("ARH"), a builder that had purportedly contracted with Home Solutions to provide services in connection with the Katrina rebuilding efforts.
On June 6, 2006, Home Solutions issued a press release, revealing that it was, in fact, lending up to $800,000 to ARH for "working capital," secured by its modular homes and land. Defendants' prior representations regarding the dramatic growth in revenues based on the announced contract opportunities were false and misleading, concealing from the investment community the Company's inability to dramatically expand both revenues and margins, in a low-margin and highly competitive market space. On this news, Home Solutions' stock plummeted, losing 29.1% to close at $6.80.
If you are a member of the class, you may, no later than August 21, 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.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.