NEW YORK, Jan. 16, 2007 (PRIME NEWSWIRE) -- Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com) ("Pomerantz") reminds investors of Technical Olympic USA, Inc. ("Technical Olympic" or the "Company") (NYSE:TOA) that the deadline for asking the Court to appoint you as lead plaintiff in the class action is February 12, 2007. Pomerantz filed a class action lawsuit in the United States District Court, Southern District of Florida, against the Company and other related defendants. The class action was filed on behalf of public investors who purchased common stock, purchased or sold call options or purchased or sold put options of the Company between August 1, 2006 and November 6, 2006, inclusive ("class period"). The complaint alleges violations of Section 10(b) and Section 20(a) of the Securities Exchange Act, and Rule 10b-5 promulgated there under.
Technical Olympic is a Delaware corporation which maintains its principal executive office in Hollywood, Florida. The Company designs, builds, and markets single-family residences, town homes, patio homes, and condominiums. The Complaint alleges that on August 1, 2005, the Company entered into a highly-leveraged joint venture to purchase and operate the homebuilding businesses of Transeastern Properties, Inc. ("Transeastern"). Technical Olympic boasted that the joint venture would add considerably to future profits without any recourse against the Company should Transeastern default on its considerable debt. But as Technical Olympic would later be forced to admit, the Company faced liability under certain circumstances for the full amount of the debt issued by Transeastern.
The complaint spells out that during the Class Period, in SEC filings and press releases, defendants reiterated their false statement that Transeastern debt was non-recourse as to Technical Olympic. In addition, defendants misrepresented the success of the operations and prospects of Transeastern. In fact, as late as May 8, 2006, defendants emphasized the progress of their joint ventures and reiterated that the success of such join ventures would lead to phenomenal earnings gains in 2006. Less than one month later, on June 5, 2006, defendants admitted that sales were actually declining by 25-40%, and on September 27, 2006, admitted for the first time that the Florida market, in which the heavily leveraged Transeastern operated, actually suffered from a "severe decline." On November 6, 2006, defendants disclosed for the first time that they could be fully liable for the Transeastern debt. These revelations caused Technical Olympic shares to plunge over 30%, wiping out over $225 million in shareholder equity.
Shareholders outside the United States may join the action, regardless of where they live or which exchange was used to purchase the securities. If you wish to review a copy of the Complaint, to discuss this action, or have any questions, please contact Teresa L. Webb (tlwebb@pomlaw.com) or Carolyn S. Moskowitz (csmoskowitz@pomlaw.com) of the Pomerantz Firm at 888.476.6529 (or 888.4-POMLAW), toll free. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
The Pomerantz Firm, which has offices in New York, Chicago and Washington, D.C., is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 50 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. For more information about the Firm, visit our web site at www.pomlaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca