RADNOR, Pa., March 22 /PRNewswire/ -- The following statement was issued today by the law firm of Schiffrin Barroway Topaz & Kessler, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Southern District of California on behalf of all common stock purchasers of Accredited Home Lenders Holding Co. ("Accredited" or the "Company") from November 1, 2005 and March 12, 2007, 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 Topaz & Kessler, 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 Accredited and certain of its officers and directors with violations of the Securities Exchange Act of 1934. 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 was improperly accounting for loan losses as conditions in the sub-prime industry deteriorated; (2) that as such, the Company's financial statements were materially misstated; (3) that the Company's underwriting guidelines were not adequately restrictive for borrowers in the sub-prime loan market; (4) that Accredited would be forced to further tighten its underwriting guidelines which would have a material impact on its future loan productions; (5) that the Company was operating without effective risk management policies and procedures in place; (6) that Accredited lacked adequate internal and financial controls; and (7) that, as a result of the above, the Company's statements about its financial well-being and future business prospects were lacking in any reasonable basis when made.
On February 14, 2007, Accredited reported the Company's financial and operating results for the fourth quarter and year ended December 31, 2006. The Company reported net income of $57.7 million for the year and "strong liquidity" of $345 million.
Less than one month after the announcement of February 14, 2007, on March 12, 2007, Accredited shocked investors when the Company revealed that its cash recourses had effectively been depleted, and that the Company was now forced to explore strategic options for continued survival. The Company further revealed for the first time it had been forced to pay approximately $190 million in margin calls since January 1, 2007, one-third of which had been received prior to the Company's February 14, 2007 announcement. Due to the Company's now precarious financial position, Accredited further revealed that it was forced to seek financial waivers and extensions of the covenants it had made with its financial lenders. In reaction to the Company's shocking news, market analysts predicted that Accredited could face liquidation, and that bankruptcy was now a serious possibility for the Company.
On the release of this shocking news, shares of the Company's stock declined $7.43 per share, or 65 percent, to close on March 13, 2007 at $3.97 per share, on unusually heavy trading volume.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin Barroway Topaz & Kessler which prosecutes class actions in both state and federal courts throughout the country. Schiffrin Barroway Topaz & Kessler 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 Topaz & Kessler or to sign up to participate in this action online, please visit http://www.sbtklaw.com/
If you are a member of the class described above, you may, not later than May 15, 2007, 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 Topaz & Kessler or other counsel of your choice, to serve as your counsel in this action.
CONTACT: Schiffrin Barroway Topaz & Kessler, 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
