Lerach Coughlin Stoia Geller Rudman & Robbins LLP Files Class Action Suit against Technical Olympic USA, Inc.
December 14 2006 - 11:51AM
Business Wire
Lerach Coughlin Stoia Geller Rudman & Robbins LLP (�Lerach
Coughlin�) (http://www.lerachlaw.com/cases/toa/) today announced
that a class action lawsuit has been commenced in the United States
District Court for the Southern District of Florida on behalf of
purchasers of Technical Olympic USA, Inc. (�Technical Olympic� or
the �Company�) (NYSE:TOA) common stock during the period between
August 1, 2005 and November 6, 2006, inclusive (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, Samuel H. Rudman
or David A. Rosenfeld of Lerach Coughlin at 800/449-4900 or
619/231-1058 or via e-mail at wsl@lerachlaw.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.lerachlaw.com/cases/toa/. 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 Technical Olympic and certain
of its officers and directors with violations of the Securities
Exchange Act of 1934. Technical Olympic, based in Hollywood,
Florida, engages in the design, building, and marketing of
single-family residences, town homes, and condominiums in the
United States. According to the complaint, at the start of the
Class Period, Technical Olympic issued a press release announcing
that, through a joint venture, it had completed the acquisition of
the homebuilding assets and operations of Transeastern Properties,
Inc. The press release further stated that the joint venture was
funded with debt provided by Deutsche Bank, among others, and was
non-recourse to Technical Olympic. The Company also issued multiple
press releases throughout the Class Period describing the financial
contribution made, and expected to be made, by the Transeastern
Joint Venture to Technical Olympic�s overall financial performance.
As alleged in the complaint, these statements were materially false
and misleading because defendants knew, but did not disclose: (i)
that the Company�s exposure to the Transeastern Joint Venture�s
debt was not �non-recourse� and that, under certain circumstances,
the Company would be liable for the debt of the joint venture; and
(ii) that the Transeastern Joint Venture was experiencing a severe
slowdown that would likely result in the loss of the Company�s
investment in the joint venture and any loans or receivables that
were owed to it. After the close of the market on November 6, 2006,
the Company disclosed � for the first time � in a filing with the
United States Securities and Exchange Commission that the Company
faced exposure for the full repayment of the loans of the
Transeastern Joint Venture in the event the Joint Venture
voluntarily filed for bankruptcy protection. Then, the next day,
the Company disclosed that one of the lenders to the joint venture
had made a demand on the Company in connection with the debt of the
joint venture, causing the Company�s stock price to decline
further. Plaintiff seeks to recover damages on behalf of all
purchasers of Technical Olympic common stock during the Class
Period (the �Class�). The plaintiff is represented by Lerach
Coughlin, which has expertise in prosecuting investor class actions
and extensive experience in actions involving financial fraud.
Lerach Coughlin, a 180-lawyer firm with offices in San Diego, San
Francisco, Los Angeles, New York, Boca Raton, Washington, D.C.,
Houston, Philadelphia and Seattle, 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. Lerach Coughlin lawyers have been
responsible for more than $20 billion in aggregate recoveries. The
Lerach Coughlin Web site (http://www.lerachlaw.com) has more
information about the firm.
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