MINNEAPOLIS, Feb. 1, 2008 (PRIME NEWSWIRE) -- Charles H. Johnson & Associates announces that a class action has been commenced in the United States District Court for the Southern District of Florida on behalf of purchasers of Levitt Corporation ("Levitt" or the "Company") (NYSE:LEV) publicly traded securities during the period January 31, 2007 through August 14, 2007 (the "Class Period").
If you are a member of the proposed Class, you may move the Court to serve as a lead plaintiff for the Class on or before March 25, 2008. You do not need to be a lead plaintiff in order to share in any recovery that may be obtained.
The Complaint alleges that Levitt and certain of its officers and directors violated federal securities laws. On January 31, 2007, Levitt announced a merger with BFC Financial Corp ("BFC"). Based on BFC stock's closing price on the previous trading day, the proposed transaction valued Levitt stock at $14.41 per share, a premium of 32 percent over the closing price of $10.88 per share on the previous trading day. During the Class Period, Defendants failed to disclose the following: 1) that the Company's Levitt and Sons subsidiary was in worse financial condition than represented and was saddled with unneeded land which would not be feasible to develop for some time; 2) Levitt and Sons was struggling to complete projects it had already begun and was often failing to complete construction of homes that it had already sold; 3) Levitt was materially overstating its financial results because it was failing to timely record an impairment in the value of its homebuilding inventory at Levitt and Sons; 4) Levitt's loans to Levitt and Sons would not be recovered; and 5) that Levitt and Sons was insolvent.
On August 15, 2007, Levitt announced that the merger agreement with BFC had been terminated. On this news, Levitt's stock fell $0.79 per share to close at $2.96 per share. Subsequently, on November 9, 2007, it was announced that Levitt and Sons filed for bankruptcy.
If you purchased Levitt Corporation securities during the Class Period, or have any questions concerning this notice or your rights with respect to this matter, please contact:
Neal Eisenbraun, Esq. (cjohnsonlaw@gmail.com)
Charles H. Johnson & Associates
2599 Mississippi Street
New Brighton, MN 55112
(651) 633-5685