Shareholder Class Action Filed Against Thornburg Mortgage, Inc. by the Law Firm of Schiffrin Barroway Topaz & Kessler, LLP
25 Septembre 2007 - 12:00AM
PR Newswire (US)
RADNOR, Pa., Sept. 24 /PRNewswire/ -- The following statement was
issued today by the law firm of Schiffrin Barroway Topaz &
Kessler, LLP: Notice is hereby given that a class action lawsuit
was filed in the United States District Court for the Southern
District of New York on behalf of all purchasers of securities of
Thornburg Mortgage, Inc. (NASDAQ:TMA) ("Thornburg" or the
"Company") from October 6, 2005 through August 17, 2007, inclusive
(the "Class Period"). If you wish to discuss this action or have
any questions concerning this notice or your rights or interests
with respect to these matters, please contact Schiffrin Barroway
Topaz & Kessler, LLP (Darren J. Check, Esq. or Richard A.
Maniskas, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or
via e-mail at . The Complaint charges Thornburg and certain of its
officers and directors with violations of the Securities Exchange
Act of 1934. Thornburg Mortgage operates as a single-family
residential mortgage lending company that originates, acquires, and
retains investments in adjustable and variable rate mortgage
assets. More specifically, the Complaint alleges that the Company
failed to disclose and misrepresented the following material
adverse facts which were known to defendants or recklessly
disregarded by them: (1) that the Company was facing an increasing
level of margin calls; (2) that the Company was experiencing
increasing difficulties in funding its operations and selling its
securities; (3) that the Company was in a precarious liquidity
position due to reduced financing options; (4) that the Company's
financial situation had significantly deteriorated causing the
Company to sell over $20 billion in securities at a steep discount;
(5) that the Company's financial statements were materially false
and misleading; and (6) that the Company lacked adequate internal
and financial controls. Beginning on August 7, 2007, investors were
shocked when numerous financial analyst firms and ratings agencies
downgraded the Company's securities due to liquidity concerns. On
this news, the Company's shares declined $1.89 per share, or 7.9
percent, to close on August 7, 2007 at $21.95 per share, on
unusually heavy trading volume. On August 10, 2007, Standard &
Poor's ("S&P") cut the Company's credit rating from "B" to "BB"
stating that Thornburg's access to repo funding was restricted,
that the Company was facing increasing margin calls, and that the
Company's reliance on short-term funding was further restricting
its access to liquidity. On this news, the Company's shares fell an
additional $3.17 per share, or 14.9 percent, to close on August 10,
2007 at $18.06 per share, again on heavy trading volume. Then on
August 13, 2007, The Associated Press reported that as a result of
the S&P downgrade, the Company would "likely have to pay higher
interest or provide more collateral to borrow money in the future."
On this news, the Company's shares declined an additional $3.78 per
share, or over 20.9 percent, to close on August 13, 2007 at $14.28
per share, on heavy trading volume. On August 14, 2007, the
Company's securities were downgraded by additional financial
analyst firms and Moody's cut the Company's credit ratings two
levels to B2, its fifth-highest speculative-grade ranking. On this
news, the Company's shares declined an additional $6.67 per share,
or 46.7 percent, to close on August 14, 2007 at $7.61 per share, on
heavy trading volume. Later on August 14, 2007, the Company
confirmed that it was suffering from a liquidity crunch and that it
was facing increased margin calls, and disclosed that it was
postponing its quarterly dividend. Then on August 20, 2007, the
Company sold $20.5 billion of securities at a steep discount to pay
down debt. As a result, the Company stated that it would record a
$930 million loss in the third quarter on the sale, "resulting in a
probable net loss for the year." On this news, the Company's shares
declined an additional $1.54, or 10.2 percent, to close on August
20, 2007 at $13.50 per share, on heavy trading volume. Plaintiff
seeks to recover damages on behalf of class members and is
represented by the law firm of Schiffrin Barroway Topaz &
Kessler which prosecutes class actions in both state and federal
courts throughout the country. Schiffrin Barroway Topaz &
Kessler is a driving force behind corporate governance reform, and
has recovered billions of dollars on behalf of institutional and
individual investors from the United States and around the world.
For more information about Schiffrin Barroway Topaz & Kessler
or to sign up to participate in this action online, please visit
http://www.sbtklaw.com/ If you are a member of the class described
above, you may, not later than October 22, 2007, move the Court to
serve as lead plaintiff of the class, if you so choose. A lead
plaintiff is a representative party that acts on behalf of other
class members in directing the litigation. In order to be appointed
lead plaintiff, the Court must determine that the class member's
claim is typical of the claims of other class members, and that the
class member will adequately represent the class. Under certain
circumstances, one or more class members may together serve as
"lead plaintiff." Your ability to share in any recovery is not,
however, affected by the decision whether or not to serve as a lead
plaintiff. You may retain Schiffrin Barroway Topaz & Kessler or
other counsel of your choice, to serve as your counsel in this
action. CONTACT: Schiffrin Barroway Topaz & Kessler, LLP Darren
J. Check, Esq. Richard A. Maniskas, Esq. 280 King of Prussia Road
Radnor, PA 19087 1-888-299-7706 (toll free) or 1-610-667-7706 Or by
e-mail at DATASOURCE: Schiffrin Barroway Topaz & Kessler, LLP
CONTACT: Darren J. Check, Esq., or Richard A. Maniskas, Esq., both
of Schiffrin Barroway Topaz & Kessler, LLP, +1-888-299-7706,
+1-610-667-7706, Web site: http://www.sbtklaw.com/
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