Several class actions have been filed against home-building company Ryland Group (NYSE: RYL) and certain of its officers and directors by stockholders who purchased the company's common stock between October 22, 2003, and January 7, 2004. The actions claim that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock.

The action alleges that the defendants' statements during the applicable period were materially false and misleading because they failed to disclose or misrepresented the following adverse facts, among others: (1) that the Texas market (and particularly Dallas) was in a freefall; (2) that Texas buyers were proving highly resistant to the entry level homes that Ryland Group was offering; and (3) that the defendants knew or recklessly disregarded that offerings of "move up" properties would be better received in that market, but that Ryland Group was not in a position to offer these types of properties.

On January 8, 2004, Ryland Group shocked the market by announcing that new orders for the fourth quarter had decreased 8.9%, largely due to an astounding 33% decline in Texas orders. Indeed, only 344 new homes were sold by Ryland Group in that quarter, as contrasted with sales of 770 new units in the third quarter of 2003. This development stood in stark contrast to the positive statements issued between October 22, 2003, and January 7, 2004, by the defendants. Ryland Group stock dived $10.16, to $72.89 per share, after closing at $83.05 per share on January 7, 2004, on heavy trading volume.

If you bought Ryland Group publicly traded securities during the applicable period, and you wish to serve as lead plaintiff, you must request appointment by the Court no later than March 15, 2004. Any member of the purported class may request appointment as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.