INVESTOR NOTICE: MURRAY, FRANK & SAILER LLP HAS FILED A SHAREHOLDER CLASS ACTION AGAINST ACCREDITED HOME LENDERS HOLDING CO. - LEND
New York, NY March 27, 2007 - Murray, Frank & Sailer LLP has filed a class action on behalf of shareholders who purchased or otherwise acquired the securities of Accredited Home Lenders Holding Co. (“Accredited” or the “Company”) (NasdaqGS: LEND) between November 1, 2005 through March 12, 2006, inclusive (the “Class Period”).
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The complaint in one of the above-referenced actions alleges that Accredited is a mortgage banking company that, among other things, sells non-prime mortgage loans secured by residential real estate and originates loans through independent mortgage brokers and direct sales force. According to the complaint, the Company issued materially false and misleading statements during the Class Period regarding its business and financial results. Specifically, the complaint alleges that the Company failed to disclose, among other things, that: (1) the Company materially misstated its financial results because it did not properly account for its allowance for loan repurchase losses; (2) as a result of deteriorating and volatile conditions in the sub-prime market, Accredited would be forced to tighten its underwriting guidelines which would have a material impact on its future loan productions; (3) Accredited lacked adequate internal and financial controls; and (4) as a result of the foregoing, the Company's financial projections during the Class Period lacked any reasonable basis when made.
The complaint alleges that on February 14, 2007, Accredited reported its results for the fourth quarter and year ended December 31, 2006. The Company reported net income of $57.7 million for the year and "strong liquidity" of $345 million. On March 12, 2007, after the market closed, Accredited shocked investors when it revealed that it had depleted its cash recourses and that it was exploring various strategic options. In addition, the Company revealed for the first time it had been forced to pay approximately $190 million in margin calls since January 1, 2007, one-third of which had been received prior to the Company's February 14, 2007 announcement. Moreover, the Company revealed that it had been forced to seek financial waivers and extensions of the covenants it had made with its financial lenders. In reaction to this news, the price of Accredited shares plummeted, falling $7.43 per share, or 65 percent, from its closing price of $11.40 on March 12, 2007 to close at $3.97 per share on March 13, 2007, on unusually heavy trading volume.
If you are a member of the class, you may, no later than May 15, 2007, move to be appointed as a Lead Plaintiff. A Lead Plaintiff is a representative, chosen by the Court, who acts on behalf of other class members in directing the litigation.
Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than fifteen years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States. You may visit our website at www.murrayfrank.com. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff’s counsel Bradley P. Dyer of Murray, Frank & Sailer LLP.
Murray, Frank & Sailer LLP
Bradley P. Dyer
Fax: (212) 682-1892
Email: [email protected]