Abraham, Fruchter & Twersky, LLP Files Class Action Suit Against iStar Financial Inc.
NEW YORK, NY--(Marketwire - April 15, 2008) - Abraham, Fruchter & Twersky, LLP filed a class
action lawsuit in the United States District Court for the Southern
District of New York on behalf of purchasers of the common stock of iStar
Financial Inc. ("iStar Financial" or the "Company") (NYSE: SFI) pursuant
and/or traceable to the Company's secondary public offering on or about
December 13, 2007 (the "Secondary Offering").
The complaint charges iStar Financial and certain of its officers and
directors with violations of the Securities Act of 1933. iStar Financial
operates as a finance company focused on the commercial real estate
industry.
According to the complaint, on or about October 9, 2007, iStar Financial
filed a Form S-3 Shelf Registration Statement with the Securities and
Exchange Commission. On or about December 13, 2007, iStar Financial filed a
Prospectus Supplement to the Shelf Registration Statement (the
"Registration Statement") with respect to the secondary offering, which
forms part of the Registration Statement, and more than 8 million shares of
iStar Financial common stock were sold to the public at $28.41 per share,
thereby raising more than $227 million.
The complaint alleges that the Registration Statement negligently failed to
disclose that the Company was then being negatively impacted by the adverse
conditions in the credit markets and was failing to recognize more than
$200 million of losses on its corporate loan and debt portfolio.
On February 28, 2008, iStar Financial issued a press release announcing its
financial results for the fourth quarter of 2007 and fiscal year 2007, the
period ending December 31, 2007. For the fourth quarter, the Company
reported a loss of ($78.7 million) or ($0.62) per share. The Company
further reported that its fourth quarter financial results were impacted by
$134.9 million of charges associated with the "impairment of two credits"
and that the Company had increased its loan loss provisions by $113
million. In response to this announcement and subsequent analyst
downgrades, the price of iStar Financial stock declined from $22.85 per
share on February 27, 2008, to $13.98 per share on March 6, 2008.
Plaintiff seeks to recover damages of all those who purchased the common
stock of iStar Financial pursuant and/or traceable to the Company's
secondary public offering on or about December 13, 2007. The Plaintiff is
represented by Abraham, Fruchter & Twersky, LLP which has extensive
experience in securities class action cases, having been ranked among the
leading class action law firms in terms of recoveries achieved by a survey
of class action law firms conducted by Institutional Shareholder Services.
If you would like to discuss this action or if you have any questions
concerning this notice or your rights as a potential class member or lead
plaintiff, you may contact: Jack Fruchter or Arthur Chen of Abraham,
Fruchter & Twersky, LLP at 212-279-5050, or via e-mail at
jfruchter@aftlaw.com or achen@aftlaw.com, respectively. If you wish to
serve as lead plaintiff, you must move the Court no later than June 13,
2008. Any member of the proposed class may move the Court to serve as lead
plaintiff through counsel of their choice, or may choose to do nothing and
remain a member of the proposed class.
Contact Information: Contact:
Jack Fruchter, Esq.
Arthur Chen, Esq.
Abraham, Fruchter & Twersky, LLP
One Penn Plaza, Suite 2805
New York, New York 10119
Tel.: (212) 279-5050