Reinhardt & Anderson Announces Notice of Pendency of Class Action Lawsuit Filed Against Imperial Credit Industries, Inc. and Certain Officers and Directors.ST. PAUL St. Paul
as a missionary he fearlessly confronts the “perils of waters, of robbers, in the city, in the wilderness.” [N.T.: II Cor. 11:26]
See : Bravery , Minn.--(BUSINESS WIRE)--Nov. 2, 1998--ALL INSTITUTIONS AND INDIVIDUALS ARE HEREBY NOTIFIED that a class action lawsuit class action lawsuit
A lawsuit in which one party or a limited number of parties sue on behalf of a larger group to which the parties belong. For example, investors may bring a class action lawsuit against a brokerage firm that has actively promoted a tax was filed in the United States District Court United States District Court
In the U.S., any of the 94 trial courts of general jurisdiction in the federal judicial system. Each state, as well as the District of Columbia and the Commonwealth of Puerto Rico, has at least one federal district court. Central District of California on behalf of all purchasers of Imperial Credit Industries NASDAQ NASDAQ
in full National Association of Securities Dealers Automated Quotations
U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ICII ICII Information Cultures and Information Interests (UNESCO conference) ; ("Imperial Credit" or the "Company") common stock during the period January, 29, 1998 through and including September 14, 1998 (the "Class Period").
The Complaint alleges that Imperial Credit and certain officers and directors of the Company during the Class Period violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
The Complaint charges that the defendants engaged in a fraudulent scheme Noun 1. fraudulent scheme - an illegal enterprise (such as extortion or fraud or drug peddling or prostitution) carried on for profit
illegitimate enterprise, racket to artificially inflate the price of Imperial Credit common stock through the issuance of a series of material false and misleading statements concerning the value of Imperial Credit's investment in, and equity interest in the earnings of, Southern Pacific Funding Corporation. The Complaint further alleges that as Southern Pacific Funding's controlling shareholder (owning 47% of Southern Pacific's common stock) and at the direction of Imperial Credit, Southern Pacific Funding made false and misleading statements relating to relating to relate prep → concernant
relating to relate prep → bezüglich +gen, mit Bezug auf +acc its reported revenue and income which were artificially inflated as the result of overly aggressive and improper accounting practices in violation of Generally Accepted Accounting Principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records.
Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting . Specifically, the Complaint alleges that the defendants knew or recklessly disregarded that the loan prepayment assumptions on which Southern Pacific Funding's gain on sale revenue were predicated were grossly inconsistent with Southern Pacific Funding's actual prepayment experience.
As the consequence of defendants' scheme, the price of Southern Pacific Funding common stock was artificially inflated to over $18 per share. With price of Southern Pacific Funding's shares artificially inflated, it is alleged that defendants shopped its holdings in Southern Pacific Funding around in order to take advantage of the artificially inflated price at which Southern Pacific Funding common stock was then trading. Suddenly, on September 14, 1998 and before Imperial Credit was able to dump its holdings of Southern Pacific Funding, the defendants scheme unraveled as it was revealed that Southern Pacific Funding was considering a write-down in the value of its residual assets Residual assets
Assets that remain after sufficient assets are dedicated to meet all senior debtholders' claims in full. which would result in earnings substantially below that which the investment community had earlier been lead to expect. As a result of this disclosure, the price of Southern Pacific Funding's shares plummeted, trading as low as $4 1/16 by the close of trading on September 14, 1998 and further declining below $3 the following trading session. As a result of this disclosure and drop in Southern Pacific Funding's share price, Imperial Credit common stock plummeted too, trading as low as $7 1/2, well below its class period high of over $25 per share. On October 1, 1998, Southern Pacific Funding announced that it had filed for protection under Chapter 11 of the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Bankruptcy Code Bankruptcy Code may refer to:
Plaintiff seeks to recover damages from the Company and the officers and directors named as defendants and is represented by the law firm of Reinhardt & Anderson. Reinhardt & Anderson devotes its practice to securities, antitrust and consumer class actions and has recovered hundreds of millions of dollars on behalf of defrauded investors and consumers in class actions throughout the United States.
If you are a member of the Class described above, you may, no later than sixty days from today move the Court to serve as lead plaintiff of the Class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel Randall H. Steinmeyer of Reinhardt & Anderson by telephone at 888/253-5139 or 612/227-9990, by facsimile at 612/297-6543, or by e-mail at firstname.lastname@example.org.