RADNOR, Pa., Nov. 3, 2010 /PRNewswire/ -- The following statement was issued today by the law firm of Barroway Topaz Kessler Meltzer & Check, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Northern District of Florida on behalf of purchasers of the securities of The St. Joe Company ("St. Joe" or the "Company"), who purchased or otherwise acquired St. Joe securities between February 19, 2008 and October 12, 2010, inclusive (the "Class Period"), including purchasers of the Company's securities pursuant or traceable to the Company's public offering of common stock on or about February 27, 2008.
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 Barroway Topaz Kessler Meltzer & Check, LLP (Darren J. Check, Esq. or David M. Promisloff, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@btkmc.com.
The Complaint charges St. Joe, certain of its officers and directors, its underwriter and auditors with violations of the Securities Act of 1933 and Securities Exchange Act of 1934. St. Joe is one of the largest real estate development companies in Florida and is engaged in town and resort development, commercial and industrial development and rural land sales. 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) as the Florida real estate market was in decline, St. Joe was failing to take adequate and required impairments and accounting write-downs on many of its Florida based property developments; (2) as a result, St. Joe's financial statements materially overvalued the Company's Florida based property developments; (3) the Company's financial statements were not prepared in accordance with Generally Accepted Accounting Principles; (4) the Company lacked adequate internal and financial controls; and (5) as a result of the foregoing, the Company's financial statements were materially false and misleading at all relevant times.
On October 13, 2010, St. Joe's investors were shocked as Greenlight Capital's David Einhorn detailed at the Value Investing Congress how St. Joe needed to take "substantial impairments" and accounting writedowns on many of its properties, and that further building by the Company "will drive the stock price to zero." Mr. Einhorn's presentation, entitled "Field of Schemes: If You Build It, They Won't Come," noted that St. Joe's "development plans have fallen flat, leaving it with 'ghost towns' and inevitable writedowns." For example, Mr. Einhorn said he would "generously" place a value of $17.8 million on the remaining residential development at St. Joe's Windmark Beach property while the company is carrying the property at $164.5 million on its balance sheet. Mr. Einhorn also stated that the Company "was 'stuck' after making an aggressive bet on beachfront developments that have gone nowhere, and that it was overvaluing the real estate holdings on its books."
On this news, shares of the Company's stock fell $2.38 per share, or 9.7 percent, to close on October 13, 2010 at $22.16 per share, on unusually heavy trading volume. The following day the Company's shares declined an additional $2.42 per share, or 10.9 percent, to close on October 14, 2010 at $19.74 per share, again on heavy trading volume. Cumulatively, over these two days St. Joe's shares declined a total of $4.80 per share, or over 19.5 percent.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Barroway Topaz Kessler Meltzer & Check which prosecutes class actions in both state and federal courts throughout the country. Barroway Topaz Kessler Meltzer & Check 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 Barroway Topaz Kessler Meltzer & Check, or for additional information about participating in this action, please visit http://www.btkmc.com/.
If you are a member of the class described above, you may, not later than January 2, 2011, 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. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
CONTACT: Barroway Topaz Kessler Meltzer & Check, LLP Darren J. Check, Esq. David M. Promisloff, 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 info@btkmc.com
Barroway Topaz Kessler Meltzer & Check, LLP
CONTACT: Darren J. Check, Esq. or David M. Promisloff, Esq., both of
Barroway Topaz Kessler Meltzer & Check, LLP, 1-888-299-7706 (toll free) or
+1-610-667-7706, info@btkmc.com
Web Site: http://www.btkmc.com/
