LEND Accredited Home Lenders(Ipo) (MM)

SAN FRANCISCO, May 1 /PRNewswire/ -- Gutride Safier Reese LLP (http://www.gutridesafier.com/) announced today that a class action was commenced in the United States District Court for the Southern District of California on behalf of purchasers of Accredited Home Lenders Holding Co. ("Accredited Home") (NASDAQ:LEND) common stock from November 1, 2005 to March 12, 2007 (the "Class Period"). If you wish to serve as lead plaintiff, you must move before the Court no later than May 15, 2007. If you wish to discuss this matter or have any questions concerning this notice or your rights or interests, please contact Michael Reese at (212) 579-4625, or via e-mail at . 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 Accredited Home and certain of its officers and directors (collectively "Accredited Home") with violations of the Securities Exchange Act of 1934. Accredited Home operates as a mortgage banking company in the United States. The complaint alleges that during the Class Period, Accredited Home issued materially false and misleading statements regarding the Accredited Home's business and financial results. As a result of such false statements, Accredited Home stock traded at artificially inflated prices during the Class Period, reaching a high of $58.45 per share on May 11, 2006. On February 14, 2007, Accredited Home issued a press release announcing disappointing profitability. Less than one month later, on March 12, 2007, after the stock market closed, Accredited Home issued another press release announcing that the Accredited Home was exploring various strategic options. Accredited Home also reported that it had paid approximately $190 million in margin calls on its facilities since January 1, 2007. In addition, Accredited Home was seeking waivers and extensions of waivers of certain financial and operating covenants under its warehouse and repurchase facilities. On March 13, 2007, Accredited Home stock collapsed $7.43 per share to close at $3.97 per share, a one-day decline of 65% on very high trading volume. The complaint filed against Accredited Home alleges that the true facts, which were known by Accredited Home but concealed from the Class during the Class Period, were as follows: (a) Accredited Home lacked requisite internal controls, and, as a result, its projections and results issued during the Class Period were based upon defective assumptions and/or manipulated facts; (b) Accredited Home's financial statements were materially misstated due to its failure to properly account for its allowance for loan repurchase losses; (c) given the deterioration and the increased volatility in the sub-prime mortgage market, Accredited Home would be forced to tighten its underwriting guidelines which would have a direct material negative impact on its loan productions going forward; and (d) given the increased volatility in the sub- prime market, it had no reasonable basis to make projections about its 2007 results. As a result, Accredited Home's projections issued during the Class Period about its 2007 results were at a minimum reckless. As a result of Accredited Home's false statements, its stock price traded at inflated levels during the Class Period. However, after the above revelations seeped into the market, Accredited Home's shares were battered by massive sales, sending them down more than 65% from their Class Period high. Plaintiffs seek to recover damages on behalf of all purchasers of Accredited Home common stock during the Class Period (the "Class"). If you wish to discuss the action or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Michael Reese of Gutride Safier Reese LLP at 212-579-4625 or . Please provide your name, email address and telephone number. For more information about Gutride Safier Reese LLP and its attorneys, who are experienced in prosecuting complex securities and consumer class actions, please visit http://www.gutridesafier.com/ DATASOURCE: Gutride Safier Reese LLP CONTACT: Michael Reese, Esq. of Gutride Safier Reese LLP, +1-212-579-4625 Web site: http://www.gutridesafier.com/

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