News
Shalov Stone Bonner & Rocco LLP Files Shareholder Class Action Lawsuit Against the Officers of HomeBanc Corp.
Shalov Stone Bonner & Rocco LLP
12/18/2007
The complaint alleges that the officers of HomeBanc - Kevin D. Race and Patrick S. Flood - violated the federal securities laws. Beginning on September 26, 2005, HomeBanc sought to register 2 million shares of 10% Series A Cumulative Redeemable Preferred Stock. On February 2, 2006, HomeBanc sold these preferred shares through its underwriters, raising approximately $50 million. But HomeBanc failed to disclose in its registration statement that it was planning to sell its adjustable rate loans for cash, and was buying lower-quality, higher-risk, residential mortgage-backed securities.
Throughout the Class Period, HomeBanc misrepresented its risk of loss due to interest rate fluctuations. HomeBanc was earning less in interest on its assets than the amount it had to pay in interest on its debts. As a result, HomeBanc had less cash available to meet its business and operating needs. HomeBanc, however, continued to tell investors that it had sufficient cash to support its liquidity needs for at least a year or more. But on August 7, 2007, HomeBanc filed for bankruptcy.
If you bought the securities of HomeBanc, including its common stock and 10% Series A Cumulative Redeemable Preferred Stock, between September 26, 2005 and August 3, 2007, no later than January 29, 2008, you may move the court to serve as lead plaintiff. Plaintiffs are represented by Shalov Stone Bonner & Rocco LLP, which has extensive experience in the prosecution of class actions on behalf of investors. For more about the firm, please visit its website at: www.lawssb.com.
For additional information, please contact Christina Golden or Sara Rosenberg, at Shalov Stone Bonner & Rocco LLP, 485 Seventh Avenue, Suite 1000, New York, New York 10018 (telephone: (212) 239-4340; e-mail: cgolden@lawssb.com, srosenberg@lawssb.com).
Complaint
Certification
Shalov Stone Bonner & Rocco LLP has filed a class action lawsuit on behalf of purchasers of the securities of HomeBanc Corp. ("HomeBanc") (OTC: "HMBN.PK" and "HMBNP.PK") between September 26, 2005 and August 3, 2007 (the "Class Period"). The case is pending in the U.S. District Court for the Southern District of Florida. A copy of the complaint can be obtained by calling our offices or from our website.
The complaint alleges that the officers of HomeBanc - Kevin D. Race and Patrick S. Flood - violated the federal securities laws. Beginning on September 26, 2005, HomeBanc sought to register 2 million shares of 10% Series A Cumulative Redeemable Preferred Stock. On February 2, 2006, HomeBanc sold these preferred shares through its underwriters, raising approximately $50 million. But HomeBanc failed to disclose in its registration statement that it was planning to sell its adjustable rate loans for cash, and was buying lower-quality, higher-risk, residential mortgage-backed securities.
Throughout the Class Period, HomeBanc misrepresented its risk of loss due to interest rate fluctuations. HomeBanc was earning less in interest on its assets than the amount it had to pay in interest on its debts. As a result, HomeBanc had less cash available to meet its business and operating needs. HomeBanc, however, continued to tell investors that it had sufficient cash to support its liquidity needs for at least a year or more. But on August 7, 2007, HomeBanc filed for bankruptcy.
If you bought the securities of HomeBanc, including its common stock and 10% Series A Cumulative Redeemable Preferred Stock, between September 26, 2005 and August 3, 2007, no later than January 29, 2008, you may move the court to serve as lead plaintiff. Plaintiffs are represented by Shalov Stone Bonner & Rocco LLP, which has extensive experience in the prosecution of class actions on behalf of investors. For more about the firm, please visit its website at: www.lawssb.com.
For additional information, please contact Christina Golden or Sara Rosenberg, at Shalov Stone Bonner & Rocco LLP, 485 Seventh Avenue, Suite 1000, New York, New York 10018 (telephone: (212) 239-4340; e-mail: cgolden@lawssb.com, srosenberg@lawssb.com).
Complaint
Certification