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Case ID: 5034 | Stocks | 07/16/2008
On March 25, 2008, a motion to appoint lead plaintiff and counsel was filed by Robotti & Company. As a result, a response to the above mentioned motion to appoint lead plaintiff and counsel was filed on April 11, 2008 by several individuals. As this case proceeds, the court has not made its order to appoint lead plaintiffs and counsels yet.
According to a press release dated January 25, 2008, the complaint charges Levitt and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Levitt, together with its subsidiaries, operates as a homebuilding and real estate development company in the southeastern United States. According to the complaint, on January 31, 2007, Levitt announced that it agreed to merge with BFC Financial Corp (“BFC”). Based on BFC stock’s closing price on the previous trading day, the proposed transaction valued Levitt stock at $14.41 per share - a premium of 32 percent over the closing price of $10.88 per share on the previous trading day. The complaint alleges that, during the Class Period, defendants issued materially false and misleading statements and failed to disclose: (i) that the Company’s Levitt and Sons subsidiary was in much worse financial condition than publicly represented. Levitt and Sons was saddled with excessive amounts of unneeded and overpriced land which would not be feasible to develop for some time. Furthermore, Levitt and Sons was struggling to complete projects it had already begun and in many instances was failing to complete construction of homes that it had already sold as it lacked the financial resources to follow through on its contracts; (ii) that as a result of the foregoing, the Company was materially overstating its financial results because it was failing to timely record an impairment in the value of its homebuilding inventory at Levitt and Sons. Although Defendants acknowledged the difficult housing market, their public statements failed to advise investors of the true financial condition of the Company; (iii) that the Company’s loans and advances to Levitt and Sons would not be recovered as the subsidiary lacked the financial resources to pay now and in the foreseeable future; and (iv) that Levitt and Sons was insolvent. Then, on August 15, 2007, the Company announced that the merger agreement with BFC had been terminated, without giving any explanation. Upon this news, shares of the Company’s stock fell $0.79 per share, or over 21%, to close at $2.96 per share. Subsequently, on November 9, 2007, it was announced that Levitt and Sons filed for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code.
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 A class action has been filed against Oppenheimer Funds, Inc. (NYSE: OPY), it’s subsidiaries, and certain of its individual funds, officers and directors by stockholders who purchased the company’s common stock between August 31, 1999 and March 22, 2004. 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 Lipman Electronic Engineering, Ltd. (LPMA), certain of its officers and directors by stockholders who purchased the company's common stock between October 4, 2004 and September 27, 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. Several class actions have been filed against biopharmaceutical company Genta, Inc. (Nasdaq:GNTA) and certain of its officers and directors by stockholders who purchased the company's common stock between March 26, 2001, and May 3, 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 parties have reached a tentative $21 million settlement in a class action filed against the Morrison Knudsen Savings Plan, the Morrison Knudsen Corporation Employee Stock Ownership Plan, other various corporate defendants, and 29 individual defendants on behalf of all current and former participants of the Savings Plan who held shares of Morrison Knudsen stock in their savings plan accounts on or after July 19, 1994, and all individuals who were participants of the Morrison Knudsen Employee Stock Ownership Plan on or after July 19, 1994. The settlement notice does not indicate a claims deadline— persons eligible to take part in the settlement should contact the attorneys for the class for more information. A class action has been filed against Exide Technologies (NasdaqNM:XIDE), certain of its officers and directors by stockholders who purchased the company's common stock between November 16, 2004 and May 17, 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. Several class actions have been filed against specialty finance company NovaStar Financial, Inc. (NYSE:NFI) and certain of its officers and directors by stockholders who purchased the company's common stock between October 29, 2003, and April 8, 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. |
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