Berger & Montague, P.C. Files Class Action Lawsuit Against Certain Officers and a Director of IndyMac Bancorp Inc., Enlarging the Class Period to Begin on April 26, 2007 |
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By: Berger & Montague, P.C. Posted: 2008-08-02 05:42:46 |
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The law firm of Berger & Montague, P.C. announces it has filed a class action lawsuit, Daniels v. Perry and Keys, No. 08-cv-085073, in the U.S. District Court for the Central District of California on behalf of all purchasers of the common stock, preferred stock and/or preferred units of IndyMac Bancorp Inc. ("IndyMac" or the "Company") between April 26, 2007 and May 12, 2008, inclusive (the "Class Period"). (The common stock ticker symbol: IDMC; formerly NYSE: IMB after May 1, 2007; and NYSE: NDE prior to May 1, 2007). This action enlarges the Class Period to begin earlier than the Class Period in the cases previously filed that began on August 16, 2007.
The Complaint alleges that IndyMac's Chief Executive Officer Michael W. Perry, and its former Chief Financial Officer A. Scott Keys ("Defendants"), violated the Securities Exchange Act of 1934 by issuing a series of materially false and misleading statements about IndyMac's financial health, including statements assuring investors that IndyMac, as a prime rather than subprime lender, would be less affected by the turmoil in the housing, mortgage and credit markets, that it was prudently managing its risks, that it had prudent asset quality and that its financial condition was sound. The Complaint alleges that at the time such statements were made, Defendants knew or recklessly disregarded that IndyMac was not following prudent or proper loan origination procedures and that it had ignored guidelines and prudent practices to originate and securitize below standard mortgage loans, resulting in increasing delinquencies and defaults and a growing inability to raise capital by selling and/or securitizing these risky loans. As a result of Defendants' allegedly false statements, IndyMac's stock traded at inflated levels throughout the Class Period and its common stock reached a high of $37.50 per share when the market opened on June 6, 2007. The truth about IndyMac's financial condition started to be revealed on November 6, 2007 and continued to May 12, 2008, when IndyMac announced that "we do not expect that Indymac will be able to return to overall profitability until the current decline in home prices decelerates. ... and we are not currently forecasting a return to profitability this year." Defendants also disclosed that "because of the significant hits we've taken, our capital ratios clearly have been depleted" and "our non-performing assets have continued to rise." As a result of Defendants' disclosures on May 12, 2008, IndyMac's stock dropped to close at $2.32 per share on May 13, 2008 on high volume, from a close of $3.43 per share on May 9, 2008 - a two-day decline of $1.11 per share, or 32%. On July 11, 2008, IndyMac Bank, the majority owned subsidiary and principal asset of IndyMac, was seized and closed by the Office of Thrift Supervision. The Federal Deposit Insurance Corporation was appointed receiver of the Bank. If you purchased or acquired IndyMac common stock, preferred stock and/or preferred units between April 26, 2007 and May 12, 2008 and sustained losses, you may, no later than August 11, 2008, request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss this action or your rights as an investor in IndyMac during the Class Period, please contact Berger & Montague toll free at 1-888-891-2289 or at investorprotect@bm.net for a more thorough explanation of the lead plaintiff selection process and the litigation. A copy of the complaint is available from the Court, or can be viewed on Berger & Montague, P.C.'s website at http://www.bergermontague.com. If you have any questions concerning this notice or your rights with respect to this matter, please contact: Sherrie R. Savett, Esq. Barbara A. Podell, Esq. Kimberly A. Walker, Investor Relations Manager Berger & Montague, P.C. 1622 Locust Street Philadelphia, PA 19103 Telephone: 1-888-891-2289 or 215-875-3000 |
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