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Case ID: 5029 | Stocks | 07/16/2008
On March 03, 2008, a stipulation and order was entered. Just as quickly, a motion to consolidate cases and to appoint certain groups as lead plaintiffs and counsels was filed on March 18, 2008. However, on March 20, 2008, a stipulation and order substituting counsels was entered. Hence, on April 04, 2008, several responses in regards to the different motions of appointing lead plaintiffs and counsels were filed. As a result, an order granting and denying the appointment of certain groups as lead plaintiffs and counsels was entered on May 05, 2008.
According to a press release dated January 18, 2008, the Complaint alleges that Defendants Centerline and certain of its officers and directors issued a series of materially false and misleading statements about Centerline's business model and financial condition, including statements concerning its portfolio of tax-exempt first mortgage bonds, which generated the majority of the Company's revenues and supported the Company's $1.68 per share annual dividend. Defendants' statements concealed from the investing public that Defendants were in the midst of structuring a sale of the Company's mortgage revenue bond portfolio to a third party. On December 28, 2007, Centerline shocked the financial markets with a press release announcing that the Company had sold its "$2.8 billion tax-exempt affordable housing bond portfolio" to a third party and, in the process, transformed the Company's business model to a pure asset management firm. As a result of this transaction, the Company disclosed that it would be slashing its annual dividend from $1.68 per share to only $0.60 per share. Even more shocking was the revelation that Defendants had entered into a related party transaction with a company owned by certain of the Defendants called The Related Companies, L.P. ("TRCLP"), whereby TRCLP agreed to provide Centerline $131 million in financing, in exchange for 12.2 million shares of newly-issued convertible preferred stock that will pay Company insiders an 11% dividend. In reaction to this news, the price of Centerline stock plummeted from $10.27 per share on December 27, 2007, to close at $7.70 per share on December 28, 2007, representing a 25% single-day decline, on unusually heavy trading volume of 4,152,688 shares.
At Lawcash.com, it is our goal to keep you informed about important legal cases, class actions and settlements. Our lawyers offer free legal evaluations in tort cases, class actions, personal injury, and other lawsuits because we are dedicated to helping you resolve your legal complaints. Other Stocks Cases of Interest According to a law firm press release dated 5/22/2008, a class action lawsuit was filed on behalf the Jacksonville Police and Fire Pension Fund against American International Group, Inc.
A class action has been filed against Gravity Co., Ltd. (NasdaqNM:GRVY), certain of its officers and directors by stockholders who purchased the company's common stock between February 07, 2005 and May 12, 2005. The action claims 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. A class action has been filed against jewelry chain story operator Friedman's Inc. (NYSE: FRM) and certain of its officers and directors by stockholders who purchased the company's common stock between January 26, 2000 and November 11, 2003. The action claims 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. A class action has been filed against Pixelplus Company, Ltd. (PXPL), certain of its officers and directors by stockholders who purchased the company's common stock between December 21, 2005 and April 11, 2006. The action claims 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. A former PricewaterhouseCoopers LLC employee has initiated a class action suit against the Big Four firm claiming unfair pension practices. The company, as well as its partners who oversee the pension and retirement plans, face a class action lawsuit that contends they used the pension plans as tax shelters for well-off partners to the detriment of regular employees and the public. A Motion to Dismiss the initial complaint was filed on April 7, 2008, by Arthrocare Corporation. In response, the Plaintiff's Motion to Stay the Motion to Dismiss was filed on April 11, 2008. In addition, certain individual defendants have filed a Motion to Dismiss on May 2, 2008. The motions are currently pending before the court. |
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