NEW YORK, March 6, 2008 (PRIME NEWSWIRE) -- Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com) ("Pomerantz") has filed a class action lawsuit (Naomi Raphael v. Municipal Mortgage & Equity, LLC et al (08-cv-02190)) in the United States District Court, Southern District of New York, against Municipal Mortgage & Equity, LLC ("MuniMae" or the "Company") and certain officers of the company. The class action was filed on behalf of purchasers of the securities of the Company during the period from May 3, 2004 through January 28, 2008, inclusive (the "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.
MuniMae maintains offices in New York City. The company is a limited liability company that provides debt and equity financing to various parties, invests in tax-exempt bonds and other housing-related debt and equity investments, and is a tax credit syndicator that acquires and transfers low-income housing tax credits. The complaint alleges that defendants issued numerous false and misleading statements concerning, among other things, MuniMae's numerous financial interests in certain entities; the value and performance of its tax-exempt bond portfolio; and the adequacy of its internal controls.
Specifically, on January 28, 2008, after the market closed, the Company stated that it was drastically reducing its dividend by more than a third and would likely restate its financial statements for the years ended December 31, 2004 and 2005, and that it would file its Form10-K for the year ended December 31, 2006, by May 30, 2008. On January 29, 2008, MuniMae disclosed that its pending restatement would reflect changes to its accounting policies, including, among other things, the consolidation of financial statements of 200 variable interest entities in which it had partnership interests under Financial Accounting Standards Board's Financial Interpretation No. 46, changes to the recognition of revenue for its low income housing tax credit business, the way MuniMae accounts for loans, and the method in how MuniMae accounts for derivatives that affect the timing of profit and loss recognition. As a result, the market price of the Company's common stock fell over 46% and closed at $9.19 per share.
On January 30, 2008, MuniMae further disclosed that effective February 6, 2008, its common stock would be delisted from the NYSE and would begin trading over-the-counter on the Pink Sheets because it would fail to meet "the NYSE's March 3, 2008 deadline to file audited financial statements for the 2006 fiscal year." The news caused shares of the Company to drop and additional 22%, to close at $7.31.
If you are a shareholder who purchased the securities of MuniMae during the Class Period, you have until March 31, 2008 to ask the Court to appoint you as lead plaintiff for the class. Lead plaintiffs must meet certain legal requirements. Shareholders outside the United States may join the action. 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) 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, Washington, D.C., Columbus, Ohio and the San Francisco Bay area, 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 70 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