NEW YORK, March 7, 2008 (PRIME NEWSWIRE) -- The Brualdi Law Firm P.C. announces that a class action lawsuit has been commenced in the United States District Court for the Southern District of Florida, on behalf of purchasers of the common stock of Levitt Corp. ("Levitt" or the "Company") (NYSE:LEV) between January 31, 2007 through August 14, 2007, inclusive (the "Class Period").
No class has yet been certified in the above action. If you are a member of the proposed Class, you may, on or before March 25, 2008, ask the Court to allow you to serve as lead plaintiff for the proposed Class. To serve as a lead plaintiff, you must satisfy certain legal requirements. In making your decision, you should take into account that those with large financial losses resulting from the alleged federal securities law violations are given preference in being appointed lead plaintiff.
To be a member of the class you need not take any action at this time, and you may retain counsel of your choice. 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 Tali Leger, Director of Shareholder Relations at The Brualdi Law Firm P.C., 29 Broadway, Suite 2400, New York, New York 10006, by telephone toll free at (877) 495-1187 or (212) 952-0602, by email to tleger@brualdilawfirm.com or visit our website at http://www.brualdilawfirm.com/
The complaint charges Levitt and certain of its officers and directors with violations of the Securities Exchange Act of 1934 (the "Exchange Act"). Levitt, together with its subsidiaries, operates as a homebuilding and real estate development company in the southeastern United States.
According to the complaint, on January 31, 2007, Levitt announced that it agreed to merge with BFC Financial Corp ("BFC"). Based upon 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. The complaint alleges that, during the Class Period, defendants issued materially false and misleading statements and failed to disclose: (i) that the Company's Levitt and Sons subsidiary was in much worse financial condition than publicly represented; (ii) that as a result of the foregoing, the Company 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; (iii) that the Company's loans and advances to Levitt and Sons would not be recovered as the subsidiary lacked the financial resources to pay now and in the foreseeable future; and (iv) that Levitt and Sons was insolvent.
Then, on August 15, 2007, the Company announced that the merger agreement with BFC had been terminated, without giving any explanation. Upon this news, shares of the Company's stock fell $0.79 per share, or over 21%, to close at $2.96 per share. Subsequently, on November 9, 2007, it was announced that Levitt and Sons filed for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code. Plaintiff seeks to recover damages on behalf of all purchasers of Levitt common stock during the Class Period (the "Class").