HARTFORD, Conn., April 15, 2008 (PRIME NEWSWIRE) -- The law firm of Schatz Nobel Izard P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Southern District of New York on behalf of all persons who purchased the common stock of iStar Financial Inc. ("iStar" or the "Company") (NYSE:SFI) pursuant or traceable to the Company's secondary public offering on or about December 13, 2007 (the "Secondary Offering").
The Complaint charges that iStar, a finance company focusing on the commercial real estate industry, and certain of its officers and directors violated federal securities laws. Specifically, on or about October 9, 2007, iStar filed a Form S-3 Shelf Registration Statement with the Securities and Exchange Commission. On or about December 13, 2007, iStar filed a Prospectus Supplement to the Shelf Registration Statement (the "Registration Statement") with respect to the Secondary Offering, which forms part of the Registration Statement, and more than 8 million shares of iStar common stock were sold to the public at $28.41 per share, thereby raising more than $227 million.
The complaint alleges that the Registration Statement negligently failed to disclose that iStar was then being negatively impacted by the adverse conditions in the credit markets and was failing to recognize more than $200 million of losses on its corporate loan and debt portfolio.
On February 28, 2008, iStar announced its financial results for the fourth quarter of 2007 and fiscal year 2007. For the fourth quarter, the Company reported a loss of ($78.7 million) or ($0.62) per share. iStar further reported that its fourth quarter financial results were impacted by $134.9 million of charges associated with the "impairment of two credits" and that the Company had increased its loan loss provisions by $113 million. In response to this announcement and subsequent analyst downgrades, iStar stock declined from $22.85 per share on February 27, 2008, to $13.98 per share on March 6, 2008.
If you are a member of the class, you may, no later than June 13, 2008, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.
While Schatz Nobel Izard P.C. has not filed a lawsuit against the Defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz Nobel Izard P.C. toll-free at (800) 797-5499, or by e-mail at firm@snilaw.com, or visit our website: www.snilaw.com.