Coughlin Stoia Geller Rudman & Robbins LLP Files Class Action Suit against IndyMac Bancorp, Inc.
June 11 2008 - 5:09PM
Business Wire
Coughlin Stoia Geller Rudman & Robbins LLP (�Coughlin Stoia�)
(http://www.csgrr.com/cases/indymac/) today announced that a class
action has been commenced in the United States District Court for
the Central District of California on behalf of purchasers of
IndyMac Bancorp, Inc. (�IndyMac�) (NYSE:IMB) common stock during
the period between August 16, 2007 and May 12, 2008 (the �Class
Period�). If you wish to serve as lead plaintiff, you must move the
Court no later than 60 days from today. If you wish to discuss this
action or have any questions concerning this notice or your rights
or interests, please contact plaintiff�s counsel, Darren Robbins of
Coughlin Stoia at 800/449-4900 or 619/231-1058, or via e-mail at
djr@csgrr.com. If you are a member of this class, you can view a
copy of the complaint as filed or join this class action online at
http://www.csgrr.com/cases/indymac/. 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. The complaint charges IndyMac and certain of its
officers and directors with violations of the Securities Exchange
Act of 1934. IndyMac is the holding company for IndyMac Bank,
F.S.B., a hybrid thrift/mortgage bank. The complaint alleges that
during the Class Period, defendants issued materially false and
misleading statements regarding the Company�s business and
financial results. Specifically, defendants downplayed and
concealed IndyMac�s growing exposure to non-performing assets,
particularly loans in its pay-option adjustable-rate mortgage
(�Option ARM�) and homebuilder construction portfolios, and made
numerous positive representations regarding the Company�s capital
position to alleviate investors� fears concerning the Company�s
capital erosion. As a result of defendants� false statements,
IndyMac stock traded at artificially inflated prices during the
Class Period, reaching a Class Period high of $24.55 per share in
October 2007. Then on May 12, 2008, IndyMac announced its first
quarter 2008 financial results, including a net loss of $184.2
million, or ($2.27) per share, compared with net earnings of $52.4
million, or $0.70 per share, in the first quarter of 2007. On this
news, IndyMac�s stock dropped to close at $2.32 per share � a
two-day decline of $1.11 per share, or 32%, and a decline of 91%
from $24.55 per share on October 2, 2007. According to the
complaint, the true facts, which were known by the defendants but
concealed from the investing public during the Class Period, were
as follows: (a) the Company was not adequately reserving for its
losses on mortgage-related assets in violation of generally
accepted accounting principles; (b) the Company had far greater
exposure to anticipated losses and defaults concerning its book of
business related to its homebuilder and Option ARM portfolios than
it had previously disclosed; (c) the Company�s capital base was not
adequate enough to withstand the significant deterioration in the
credit and real estate markets and could jeopardize the Company�s
status as �well capitalized;� (d) IndyMac had not adequately
reserved for Option ARMs; and (e) given the Company�s exposure to
the increased volatility in the credit and real estate markets, the
Company had no reasonable basis to make projections about its
earnings. Plaintiff seeks to recover damages on behalf of all
purchasers of IndyMac common stock during the Class Period (the
�Class�). The plaintiff is represented by Coughlin Stoia, which has
expertise in prosecuting investor class actions and extensive
experience in actions involving financial fraud. Coughlin Stoia, a
190-lawyer firm with offices in San Diego, San Francisco, Los
Angeles, New York, Boca Raton, Washington, D.C., Philadelphia and
Atlanta, is active in major litigations pending in federal and
state courts throughout the United States and has taken a leading
role in many important actions on behalf of defrauded investors,
consumers, and companies, as well as victims of human rights
violations. The Coughlin Stoia Web site (http://www.csgrr.com) has
more information about the firm.
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