PHILADELPHIA, Aug. 2, 2007 LAWFUEL – The Legal Newswire — Law Offices Bernard M. Gross, P.C. announced that a class action lawsuit has been commenced in
the United States District Court for the Eastern District of New York,
Civil Action No. 07-3193, on behalf of purchasers of the securities of
American Home Mortgage Investment Corp. (“American Home”) (NYSE:AHM)
between July 26, 2006 and July 27, 2007, inclusive (the “Class
Period”), seeking to pursue remedies under the Securities Exchange Act
of 1934 (the “Exchange Act”). The case is pending before the Honorable
Thomas C. Platt.
If you wish to serve as lead plaintiff, you must move the Court no
later than September 29, 2007. If you wish to discuss this action or
have any questions concerning this notice or your rights or interests,
contact plaintiff’s counsel, Deborah R. Gross or Susan R. Gross at
866-561-3600 or 215-561-3600 or via email at debbie@bernardmgross.com
or susang@bernardmgross.com. If you are a member of this class, please
contact the Law Offices Bernard M. Gross to receive a copy of the
complaint as filed or to join this action.
The complaint charges American Home (“AHM”) and Michael Strauss, Chief
Executive Officer with violations of Sections 10(b) and 20(a) of the
Exchange Act and Rule 10b-5, by issuing a series of materially false
and misleading statements to the market during the Class Period that
misrepresented and failed to disclose that: (i) AHM’s credit related
expenses were increasing dramatically by reason of its three month
“timely repayment” warranty granted by AHM to buyers who purchased
stated income loans with high loan to value ratios; (ii) AHM was
experiencing an increasing level of delinquencies on loans which were
subject to AHM’s “timely repayment” warranty which were depressing its
earnings and threatening its historical level of dividends; (iii) AHM
was experiencing increasing difficulties in selling its loans and was
required to decrease prices, reducing margins and profits; (iv) AHM was
overstating its financial results by failing to adequately reserve for
“timely repayment” warranties loans and by failing to adequately
write-down the value of certain of the loans in its portfolio as these
loans declined substantially in value; and (v) AHM’s sources of cash
were drying up and it was required to provide additional cash under its
warehouse lines of credit as the value of the loans which
collateralized those borrowings fell dramatically.
Plaintiff seeks to recover damages on behalf of all those who purchased
the securities of American Home Mortgage Investment Corp. between July
26, 2006 and July 27, 2007. If you wish to discuss this action or have
any questions concerning this Notice or your rights or interests with
respect to these matters,
