NEW YORK, May 9, 2007 (PRIME NEWSWIRE) -- Labaton Sucharow & Rudoff LLP filed a class action lawsuit on May 9, 2007 in the United States District Court for the Southern District of California, on behalf of persons who purchased or otherwise acquired publicly traded securities of Accredited Home Lenders Holding Co. ("Accredited" or the "Company") (Nasdaq:LEND) between January 28, 2004 and March 12, 2007, inclusive, (the "Class Period"). This represents an expansion of the Class Period in previously filed complaints. The lawsuit was filed against Accredited and James A. Konrath, Joseph J. Lydon, Stuart D. Marvin, John S. Buchanan, David E. Hertzel and Jeffrey W. Crawford ("Defendants").
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/en/about/press/Accredited-Home-Lenders-Holding.cfm
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. In particular, the complaint alleges that the Company's representations made during the Class Period were materially false and misleading when they were made because they failed to disclose that: (1) Accredited did not make higher quality, lower risk loans than its peers, and Defendants' statements to the contrary misled investors and understated the risk facing the Company and investors; (2) the Company misled the market about its underwriting processes; (3) the Company routinely disregarded internal underwriting guidelines; and (4) The Company's apparent success was attributable in material part to its unsustainable practice of granting loans that were far riskier than Defendants had led the market to believe.
On February 14, 2007, Accredited reported its financial and operating results for the fourth quarter and year ended December 31, 2006, indicating that it had continued to strengthen its reserve balances, increasing total reserves by $42 million for the quarter. On March 12, 2007, Accredited announced that its cash resources had effectively been depleted and that it was forced to pay approximately $190 million in margin calls since January 1, 2007. The Company further revealed that it was forced to seek financial waivers and extensions of the covenants it made with its financial lenders. Shares of Accredited declined $7.43 per share, or 65%, to close on March 13, 2007 at $3.97 per share.
Plaintiff is 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 Accredited securities between January 28, 2004 and March 12, 2007, inclusive, you may qualify to serve as Lead Plaintiff. Lead Plaintiff papers must be filed with the court no later than May 15, 2007. 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.primenewswire.com/ca/