NEW YORK, Feb. 11, 2005 (PRIMEZONE) -- Schoengold Sporn Laitman & Lometti, P.C. ("SSL&L") filed a class action lawsuit on behalf of all persons and entities that purchased Merit Securities Corporation Collateralized Bonds Series 13 (the "Bonds") during the period August 11, 1999 through May 11, 2004 (the "Class Period"). If you purchased the Bonds during the Class Period and wish to participate in the litigation or obtain more information, you may contact the attorneys handling the case by visiting SSL&L's website at www.spornlaw.com or contact SSL&L toll free at (866) 348-7700 or via e-mail (any e-mail should include your name, address, phone number and the number of Bonds you purchased within the Class Period) at shareholderrelations@spornlaw.com. However, please note that the deadline to seek lead plaintiff status in this case expires April 8, 2005.
The complaint alleges that, during the Class Period, the prospectus disseminated by Merit, in connection with the offering of the Bonds, contained materially false and misleading information concerning the manufactured housing loans originated during 1997 through 1999, which were pooled together to serve as collateral for the Bonds. These misstatements included that the Bonds were originated in compliance with underwriting standards, when in fact, those procedures were largely disregarded. These misstatements resulted in an artificially high credit ratings and pricing. It is further alleged that the Bonds prices were inflated due to misrepresentations of the true repossession rates. The truth only began to emerge, following the disclosure of corrected repossession and foreclosure rates on February 24, 2004, as the Bonds were dramatically downgraded. Moreover, ensuing disclosures in April 2004 revealed that even Merit's "current manufactured housing collateral may be deemed impaired."
The claims asserted arise under Sections 10 and 20 of the Securities Exchange Act of 1934. Named as defendants in the suit are Dynex Capital, Inc. (Merit's parent corporation), Merit Securities Corp., Stephen J. Benedetti, Thomas H. Potts, Lehman Brothers Inc., and Greenwich Capital Markets, Inc. The case is pending in the United States District Court for the Southern District of New York. Any subsequently filed cases seeking similar relief and relating to the same facts as alleged herein are expected to be consolidated into this case.
Under recent amendments to the securities laws, if you purchased the Bonds during the Class Period, you may request that the Court appoint you lead plaintiff. However, you must do so before April 8, 2005.
SSL&L was established in 1962 and has specialized in securities fraud litigation for over 35 years. Recently in 2004, SSL&L achieved a $39 million settlement as sole lead counsel in the prosecution of the securities litigation against Nicor, Inc. In 2003, The Federal District Judge McMahon in commending on SSL&L's prosecution of another securities fraud action noted "Through (SSL&L's) efforts, after intensive investigation, concentrated litigation and extensive arms-length bargaining, and without the benefit of any governmental agency's investigation, Class Counsel have secured a settlement fund which confers an excellent benefit to the Class...."
If you would like to further discuss your rights regarding the appointment of lead plaintiff and your interest in the class action, you may call collect or otherwise contact the undersigned, who will be pleased to assist.
A logo for Schoengold Sporn Laitman & Lometti, P.C. is available at: http://www.primezone.com/newsroom/prs/?pkgid=1411
More information on this and other class actions can be found on theClass Action Newsline at www.primezone.com/ca.