Contact Information: Contact: Peretz Bronstein or Eitan Kimelman Bronstein, Gewirtz & Grossman, LLC 212-697-6484
Bronstein, Gewirtz & Grossman, LLC Announces That a Class Action Has Been Filed Against CompuCredit Corporation
| Source: Bronstein, Gewirtz & Grossman, LLC
NEY YORK, NY--(Marketwire - July 24, 2008) - Bronstein, Gewirtz & Grossman, LLC announces
that a class action lawsuit has been filed in the United States District
Court for the Northern District of Georgia against CompuCredit Corporation
("CompuCredit" or the "Company") (NASDAQ : CCRT ) and various individuals on
behalf of purchasers of CompuCredit securities who purchased between
November 6, 2006 and June 9, 2008 (the "Class Period").
The complaint alleges CompuCredit issued materially false and misleading
statements regarding the Company's business and financial results. As a
result of CompuCredit's false statements, its stock traded at artificially
inflated prices during the Class Period, reaching its Class Period high of
$40.61 per share on December 12, 2006.
According to the complaint, the true facts, which were known by the
defendants but concealed from the investing public during the Class Period,
were as follows: (a) the Company's assets contained millions of dollars
worth of impaired and risky securities, many of which were backed by loans
to subprime borrowers; (b) the Company was not adequately accounting for
its provision for loan losses in violation of Generally Accepted Accounting
Principles, causing its financial results to be materially misstated; (c)
the Company's improper marketing and collection practices would lead to
large fines and would harm the Company's future results; (d) the Company
had far greater exposure to anticipated losses and defaults related to its
subprime customers than it had previously disclosed; (e) given the
deterioration in the market for asset-backed securities related to subprime
consumers, the Company would be forced to reduce its lending operations due
to liquidity concerns as it relied upon the sale of its asset-backed
securities to fund its ongoing operations; and (f) given the increased
volatility in the subprime market and increased level of delinquencies and
defaults that CompuCredit was experiencing, the Company had no reasonable
basis to make projections about its financial results.
No Class has yet been certified in the above action. If you wish to review
a copy of the Complaint, to discuss this action, or have any questions,
please contact either Peretz Bronstein or Eitan Kimelman of Bronstein,
Gewirtz & Grossman, LLC at 212-697-6484 or via email eitan@bgandg.com.
Those who inquire by e-mail are encouraged to include their mailing address
and telephone number.
Bronstein Gewirtz & Grossman, LLC is a corporate litigation boutique. Our
primary expertise is the aggressive pursuit of litigation claims on behalf
of our clients. In addition to representing institutions and other
investor plaintiffs in class action security litigation, the firm's
expertise includes general corporate work, private securities offerings,
and securities arbitration.