Seeger Weiss LLP Announces a Class Action Lawsuit Against American Home Mortgage Investment Corporation -- AHM 1:42p ET August 2, 2007 (*********wire) The law firm of Seeger Weiss LLP announces that it filed a class action lawsuit today in the United States District Court for Eastern District of New York on behalf of purchasers of American Home Mortgage Investment Corporation ("AHM" or "Company") (NYSE:AHM) common stock in the open market between July 26, 2006 and July 27, 2007, inclusive (the "Class Period"). The complaint seeks remedies for the class under the Securities Exchange Act of 1934 (the "Exchange Act").
The complaint charges that defendants AHM, Michael Strauss and Stephen A. Hozie, violated Sections 10(b) and 20(a) of the Exchange Act and Rule 10b-5, by issuing a series of material misrepresentations to the market during the Class Period. AHM is a real estate investment trust (REIT), which engages in the investment and origination of residential mortgage loans in the United States. The Company primarily originates and sells securitized adjustable-rate mortgage loans, as well as engages in the sale of mortgage loans to institutional investors and servicing mortgage loans owned by others.
According to the complaint, during the Class Period, defendants disseminated or approved the materially false and misleading statements which they knew or deliberately disregarded were misleading in that they contained misrepresentations and failed to disclose material facts necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading.
On June 28, 2007, American Home Mortgage issued a press release announcing that it will take "substantial charges for credit-related expenses in the second quarter." The Company reported that the increase in losses was related to its practice of extending a three month timely payment warranty that the Company granted to loan buyers who purchased stated income loans. In response to this announcement, the price of American Home Mortgage stock declined from $20.91 per share to $18.38 per share on extremely heavy trading volume. Then, on July 27, 2007, after the close of the market, American Home Mortgage issued a press release announcing that its Board of Directors had determined to delay paying its dividend. In response to this announcement, on July 30, 2007, the NYSE halted trading in American Home Mortgage stock before the market opened. After the stock reopened for trading, it traded down even further, closing at less than $1.50 per share on July 31 and August 1, 2007.
Seeger Weiss is a New York based law firm that is active in major complex litigations and class actions pending in federal and state courts throughout the United States. Seeger Weiss has taken a leading role in many important actions on behalf of defrauded investors, consumers and others and has recovered millions of dollars for clients and class members.
If you are a member of the class described above, you may, no later than 60 days from July 31, move before 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 Seeger Weiss LLP, or other counsel of your choice, to serve as your counsel in this action.
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American Home Mortgage Investment Corp. will be closing its doors Friday, after several attempts to sell of all or some of its divisions to rival lenders went up in smoke this week, numerous employees said.
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Bwahahaaaa... hell yeah. What a day today.. Them money-lending bloodsuckers going down, well deserved.. I feel like some kind of a vulture-pirate, snatching valuables off of a sinking ship..
-------------------- the market is not your mother
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quote: Newsday.com American Home Mortage closing tomorrow BY DANIEL WAGNER
daniel.wagner*newsday.com
3:23 PM EDT, August 2, 2007
American Home Mortgage Investment Corp. will be closing its doors Friday, after several attempts to sell of all or some of its divisions to rival lenders went up in smoke this week, numerous employees said.
Employees said they were contacted by senior management through the course of the day and told that none of their strategic options for remaining open had panned out.
Just after 3 p.m., company founder Michael Strauss sent an email to employees saying, "American Home Mortgage has been forced to close." It said tomorrow would be their final day of employment.
Employees expressed frustration with the secrecy of this week's process, and with upper management's decision not to disclose any information about the company's status until the bankruptcy was announced earlier today.
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Hmm.. I guess it sounds a different note when regular Joes are getting fired.. and I'm sure the bigwigs had enough time to secure a soft landing..
-------------------- the market is not your mother
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Associated Press FBR Analyst Cuts AHM Target to Zero Associated Press 08.02.07, 4:16 PM ET
NEW YORK - A Friedman Billings Ramsey analyst on Thursday said American Home Mortgage Investment Corp.'s stock is probably worthless.
Friedman Billings Ramsey analyst Paul J. Miller Jr. cut his price target on the Melville, N.Y.-based mortgage lender's shares to zero from $3. American Home Mortgage Investment specialized in home equity and so-called Alt-A loans, the latter of which refers to loans in which borrowers do not have to document their income and assets.
The action followed the company's announcement earlier this week that it may need to liquidate to placate its lenders, who want their money back because the loans in the company's portfolio have rapidly lost their value.
And that disclosure, in turn, followed a news release in which the company said it would not pay a 70 cent per share dividend scheduled to be distributed that day. American Home Mortgage Investment said it needs to keep its cash because it is not sure how bad the conditions in its industry will become.
American Home Mortgage Investment's stock, which closed last year higher than $35, plunged to barely more than a dollar on Tuesday. The shares have lost roughly 95 percent of their value this year and on Wednesday sank as low as 85 cents.
Miller said the next announcement the company will make is that it has sold its loans or pieces of itself. He does not expect any of the proceeds of the sale to trickle to shareholders, and ultimately anyone holding the stock now will recover nothing from the company.
Shares of American Home Mortgage investment gained 85 cents, or 57.4 percent, to $2.33 in afternoon trading Thursday.
Miller is not the only Wall Street analyst with a zero price target on American Home Mortgage Investment. Keefe, Bruyette & Woods analyst Bose George earlier this week cut his price target to zero and Deutsche Bank analyst Stephen Laws suspended his target.
RBC Capital Markets analyst James Ackor attaches a caveat to his $2 price target that the shares are as likely to be worthless as not.
Copyright 2007 Associated Press. All rights reserved. This material may not be published broadcast, rewritten, or redistributed
-------------------- "Great Day for Up!"....Dr. Seuss
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quote:Originally posted by fourseven: This junk is still trading... what?!
MM's still need to rid of the stocks of course don't they need to file bankruptcy and stuff? and i suppose they still got assets to sell.. they could be trading for a while, may be taken off nasdaq if they don't keep up w/ filing tho
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