LOS ANGELES, Aug. 1, 2007 (PRIME NEWSWIRE) -- Notice is hereby given that Glancy Binkow & Goldberg LLP has filed a Class Action lawsuit in the United States District Court for the Southern District of New York on behalf of a class (the "Class") consisting of all persons or entities who purchased or otherwise acquired the common stock of American Home Mortgage Investment Corp. ("American Home Mortgage" or the "Company") (NYSE:AHM) between April 26, 2006 and July 30, 2007, inclusive (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 American Home Mortgage and certain of the Company's executive officers with violations of federal securities laws. Plaintiff claims that defendants' material omissions and dissemination of materially false and misleading statements concerning the Company's financial performance and prospects caused American Home Mortgage's stock price to become artificially inflated, inflicting damages on investors. American Home Mortgage is in the business of investing in mortgage-backed securities and mortgage loans resulting from the securitization of residential mortgage loans that the Company's subsidiaries originate and service. The Complaint alleges that throughout the Class Period defendants failed to disclose, among other things, that the Company was operating without adequate reserves for delinquent loan repurchases or an adequate strategic plan in relation to the volatility of certain of American Home Mortgage's loan products. As a result of defendants' failure to fully disclose that the Company was operating without adequate reserves in relation to the Company's prior sales of certain of American Home Mortgage's loan products or an adequate strategic plan for the repurchase of delinquent previously sold loans, defendants materially misrepresented to investors the true facts concerning American Home Mortgage's financial performance and prospects.
On June 28, 2007, American Home Mortgage announced that the Company "will take substantial charges for credit-related expenses in the second quarter. As a result, the Company's second quarter financial results are uncertain, and it is likely the Company will experience a second quarter loss." As result of this news, American Home Mortgage stock fell from $20.91 per share to $18.38 per share on unusually heavy trading volume. Then, on July 27, 2007, after the close of the market, American Home Mortgage announced that its Board of Directors had determined to delay paying its dividend. Three days later, on July 30, 2007, the NYSE halted trading in American Home Mortgage stock.
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 October 1, 2007, 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.
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca