HARTFORD, Conn., March 19, 2007 (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 California on behalf of all persons who purchased or otherwise acquired the common stock of Accredited Home Lenders Holding Co. ("Accredited" or the "Company") (Nasdaq:LEND) between November 1, 2005 and March 12, 2007 inclusive, (the "Class Period"). Also included are those who acquired Accredited through the acquisition of Aames Investment Corp.
The Complaint alleges that Accredited and certain of its officers and directors violated Federal Securities laws by issuing materially false statements regarding the Company's financial results. Specifically, the defendants concealed the following: (i) Accredited lacked requisite internal controls, and, as a result, the Company's projections and reported results were based upon defective assumptions; (ii) the Company's financial statements were materially misstated due to its failure to properly account for its allowance for loan repurchase losses; and (iii) given the deterioration and the increased volatility in the sub-prime market, Accredited would be forced to tighten its underwriting guidelines which would have a direct material negative impact on its loan productions going forward.
On February 14, 2007, Accredited issued a press release announcing disappointing profitability. Then, on March 12, 2007, after the market closed, the Company reported that it had paid approximately $190 million in margin calls on its facilities since January 1, 2007. In addition, Accredited was seeking waivers and extensions of waivers of certain financial and operating covenants under its warehouse and repurchase facilities. On March 13, 2007, Accredited's stock collapsed $7.43 per share to close at $3.97 per share, a one-day decline of 65%.
If you are a member of the class, you may, no later than May 15, 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, 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@snlaw.net, or visit our website: www.snlaw.net.