NEW YORK, July 1, 2008 (PRIME NEWSWIRE) -- On June 30, 2008, Scott+Scott LLP filed a class action against IndyMac Bancorp, Inc. ("IndyMac" or the "Company") (NYSE:IMB) and certain officers and directors in the U.S. District Court for the Central District of California. The action is on behalf of those purchasing IndyMac common stock during the period beginning August 17, 2007 through May 11, 2008, inclusive (the "Class Period"), for violations of the Securities Exchange Act of 1934. The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding IndyMac's business and financial results and, as a result, the price of the Company's securities were inflated during the Class Period, thereby harming investors.
If you purchased IndyMac common stock during the Class Period and wish to serve as a lead plaintiff in the action, you must move the Court no later than August 11, 2008. Any member of the investor class may move the Court to serve as lead plaintiff through counsel of its choice, or may choose to do nothing and remain an absent class member. If you wish to discuss this action or have questions concerning this notice or your rights, please contact Scott+Scott (scottlaw@scott-scott.com, (800) 404-7770, (860) 537-5537 or visit the Scott+Scott website, http://www.scott-scott.com) for more information. There is no cost or fee to you.
According to the complaint, defendants concealed IndyMac's growing exposure to loans in its pay-option adjustable-rate mortgage ("Option ARM") and homebuilder construction portfolios and made false representations regarding the Company's capital position in an attempt to divert investors' concerns regarding the Company's capital erosion. As a result of defendants' false statements, IndyMac stock traded at artificially inflated prices during the Class Period.
On May 12, 2008, the Company stunned investors when it reported a first quarter net loss of $184.2 million, or ($2.27) per share. On this news, IndyMac's stock dropped to close at $2.32 per share -- a two-day decline of $1.11 per share, or 32%. Since October 2, 2007, the Company's battered shares have declined from $24.55 per share, or 91%.
Scott+Scott has significant experience in prosecuting major securities, antitrust and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals and other entities worldwide.
More information on this and other class actions can be found on the Class Action Newsline at http://www.primenewswire.com/ca/