RADNOR, Pa., Jan. 13 /PRNewswire/ -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the District of New Jersey on behalf of all securities purchasers of Impac Mortgage Holdings, Inc. ("Impac" or the "Company") between May 13, 2005 and August 9, 2005, inclusive (the "Class Period").
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Darren J. Check, Esq. or Richard A. Maniskas, Esq.) toll-free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at
The complaint charges Impac and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Impac operates as a mortgage real estate investment trust ("REIT"), which engages in the acquisition, origination, sale, and securitization of nonconforming Alt-A mortgages. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company's operating margins were significantly and negatively affected by the rise in short-term interest rates; given this Impac could not sustain its high dividend payments; (2) that the Company lacked adequate internal controls; and (3) that the Company's statements with respect to its current condition and future prospects lacked in all reasonable basis when made.
On August 9, 2005, Impac shocked the market when it revealed that the Company posted a net loss of $55 million, or 78 cents per share, compared to a profit of $143.2 million, or $2.17 per share. The Company also forecasted a reduced dividend of 50 cents to 60 cents a share in the third quarter, down from the previous 75 cents per share. On this news, shares of Impac fell $2.39 per share, or 14.60 percent, on August 10, 2005, to close at $13.98 per share.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, which prosecutes class actions in both state and federal courts throughout the country. Schiffrin & Barroway is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. For more information about Schiffrin & Barroway, or to sign up to participate in this action online, please visit http://www.sbclasslaw.com/.
If you are a member of the class described above, you may, not later than March 13, 2006, move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Schiffrin & Barroway, or other counsel of your choice, to serve as your counsel in this action.
CONTACT: Schiffrin & Barroway, LLP
Darren J. Check, Esq.
Richard A. Maniskas, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll-free) or 1-610-667-7706
Or by e-mail at
