HARTFORD, Conn., Dec. 14, 2006 (PRIME NEWSWIRE) -- The law firm of Schatz Nobel Izard, P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Southern District of Florida on behalf of all persons who purchased or otherwise acquired the securities of Technical Olympic USA, Inc. ("Technical Olympic" or the "Company") (NYSE:TOA) between August 1, 2005 and November 6, 2006, inclusive, (the "Class Period"). Also included are those who purchased in the Secondary Offering on September 7, 2005.
The Complaint alleges that Technical Olympic and certain of its officers and directors violated federal securities laws. Specifically, defendants announced that, through a joint venture, it had completed the acquisition of the homebuilding assets and operations of Transeastern Properties, Inc. Defendants stated that the joint venture was funded with debt and was non-recourse to Technical Olympic. Unbeknownst to investors: (i) the Company's exposure to the Transeastern Joint Venture's debt was not "non-recourse" and under certain circumstances, the Company would be liable for the debt of the joint venture; and (ii) the Transeastern Joint Venture was experiencing a severe slowdown that would likely result in the loss of the Company's investment.
After the close of the market on November 6, 2006, the Company disclosed in a filing with the Securities and Exchange Commission that it 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. 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.
If you are a member of the class, you may, no later than February 12, 2007, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz Nobel Izard has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz Nobel Izard toll-free at (800) 797-5499, or by e-mail at sn06106@aol.com, or visit our website: www.snlaw.net.