ATLANTA, April 2, 2007 (PRIME NEWSWIRE) -- Holzer Holzer & Fistel, LLC ("Holzer Fistel") (http://www.holzerlaw.com) today announced that it filed a class action in the United States District Court for the Northern District of Georgia on behalf of purchasers of Beazer Homes USA, Inc. ("Beazer") (NYSE:BZH) common stock during the period between July 27, 2006 and March 27, 2007 (the "Class Period").
If you wish to serve as lead plaintiff, you must move the Court no later than May 29, 2007. If you wish to discuss this action, request a copy of the complaint, or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Corey D. Holzer or Michael I. Fistel, Jr. of Holzer Fistel at 888/508-6832 or 770/392-0090, or via e-mail at mfistel@holzerlaw.com. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges Beazer and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Beazer designs, sells and builds primarily single-family homes in various locations within the United States and provides mortgage origination and title insurance services to its homebuyers.
The complaint alleges that during the Class Period defendants issued false and misleading statements regarding the Company's business and prospects and failed to disclose to the investing public the following adverse facts: (a) the Company lacked requisite internal controls over its lending practices, which, as a result of its improper lending practices prior to and during the Class Period, would lead to numerous foreclosures and other problems; (b) the Company's business was growing in large part due to its improper lending practices to low-income borrowers; (c) many of the Company's buyers would not be able to pay their loans after the first two years, which would lead to decreased sales and earnings and numerous foreclosures; and (d) given the increased volatility in the lending market, the Company had no reasonable basis to make projections about its 2007 results and as a result, the Company's 2007 projections issued during the Class Period were at a minimum reckless. The complaint alleges that as a result of defendants' false statements, Beazer stock traded at artificially inflated prices during the Class Period, reaching a high of $48 per share in December 2006, and the Company's CEO and CFO were able to sell over $9.7 million worth of their Beazer stock.
On March 18, 2007, The Charlotte Observer reported that federal housing officials were reviewing whether Beazer complied with federal rules in arranging government-insured loans for buyers in its subdivisions. On March 21, 2007, Beazer announced the resignation of its CFO. Then, on March 27, 2007, after the market closed, the Company issued a press release responding to media reports and inquiries into the possibility of a federal investigation of the Company in connection with alleged mortgage fraud. On this news, the complaint alleges, Beazer's stock fell $2.64 per share to close at $28.77 per share on March 28, 2007, a one-day decline of 9% and a 40% decline from its Class Period high of $48 per share.
Plaintiff is represented by Holzer Fistel and seeks to recover damages on behalf of all purchasers of Beazer common stock during the Class Period (the "Class").
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca/