HARTFORD, Conn., Jan. 31, 2008 (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 New York on behalf of all persons who purchased the common stock of Centerline Holding Company ("Centerline" or the "Company") (NYSE:CHC) between March 12, 2007 and December 28, 2007, inclusive (the "Class Period").
The Complaint alleges that Centerline's officers and directors violated federal securities laws by issuing a series of materially false and misleading statements about Centerline's business model and financial condition, including statements concerning its portfolio of tax-exempt first mortgage bonds, which generated the majority of Centerline's revenues and supported the Company's $1.68 per share annual dividend. Defendants' statements concealed that Defendants were in the midst of structuring a sale of the Company's mortgage revenue bond portfolio to a third party. On December 28, 2007, Centerline announced that the Company had sold its $2.8 billion tax-exempt affordable housing bond portfolio to a third party and, in the process, transformed the Company's business model to a pure asset management firm. As a result of this transaction, Centerline disclosed that it would be slashing its annual dividend from $1.68 per share to only $0.60 per share.
Defendants also revealed that they had entered into a related party transaction with a company owned by certain Company insiders, called The Related Companies, L.P. ("TRCLP"), whereby TRCLP agreed to provide Centerline $131 million in financing, in exchange for 12.2 million shares of newly-issued convertible preferred stock that will pay Company insiders an 11% dividend. On this news, Centerline stock plummeted 25%, from the previous day's close, to a close of $7.70 per share on December 28, 2007.
If you are a member of the class, you may, no later than March 18, 2008, 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 P.C. 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 P.C. toll-free at (800) 797-5499, or by e-mail at firm@snilaw.com, or visit our website: www.snilaw.com.