NEW YORK, Aug. 7, 2007 (PRIME NEWSWIRE) -- The Rosen Law Firm today announced that it has commenced an investigation into allegations that Luminent Mortgage Capital, Inc. ("Luminent" or the "Company") (NYSE:LUM) violated the federal securities laws by making materially false statements about the Company's financial position and prospects.
On July 23, 2007, the Company issued a newsletter to shareholders acknowledging the general market downturn with the residential-backed securities market. The newsletter, however, touted the Company's due diligence in its operations, that the Company's loans were "safer," and the Company's delinquencies were lower than the market as a whole.
On July 30, 2007, with mortgage market further deteriorating, the Company reassured investors that its second quarter dividend of $.32 per share, payable on August 8, 2007, "is secure and will not be cancelled." The Company also announced that "as of July 30, 2007 it had ample liquidity to manage its business" and that it was in full compliance with all of its financial covenants.
In the morning of August 6, 2007 the Company stock was halted pending news. Later that day, the Company announced, among other things, it was suspending its dividend-which was to be paid on August 8, 2007, that the Company was delaying the filing of its quarterly report on From 10-Q with the SEC, that the Company was experiencing significant increase in margins calls, and that the Company's Board was considering a full range of strategic alternatives to enhance the Company's liquidity and preserve shareholder value.
The August 6, 2007 announcement shocked the market. The Company's stock resumed trading on NYSE on August 7, 2007 and closed the day at $1.08 a share-down 75% from the day before.
As a result of these allegations, the Rosen Law Firm is preparing a class action lawsuit on behalf of investors who purchased Luminent securities during the period from May 10, 2007 through and including August 6, 2007.
You may access the website at http://www.rosenlegal.com to participate in the proposed class action.
If you purchased Luminent securities and would like further information concerning your legal rights, please contact Laurence Rosen, Esq. or Phillip Kim, Esq. toll-free at 866-767-3653 or email lrosen@rosenlegal.com or pkim@rosenlegal.com or visit the website at www.rosenlegal.com
The Rosen Law Firm has expertise in prosecuting investor securities litigation and extensive experience in actions involving financial fraud. The Rosen Law Firm represents investors throughout the nation, concentrating its practice in securities class actions.