| Company: | IndyMac Bancorp, Inc. |
| Ticker Symbol: | NYSE: IMB |
| Class Period: | August 16, 2007 to May 12, 2008 |
| Date Filed: | June-11-08 |
| Lead Plaintiff Deadline: | August-8-08 |
| Court: | Central District, CA |
| Allegations: |
A class action has been commenced in the United States District Court for the Central District of California on behalf of purchasers of IndyMac Bancorp, Inc. ("IndyMac") (NYSE:IMB) common stock during the period between August 16, 2007 and May 12, 2008 (the "Class Period").
The complaint charges IndyMac and certain of its officers and directors with violations of the Securities Exchange Act of 1934. IndyMac is the holding company for IndyMac Bank, F.S.B., a hybrid thrift/mortgage bank.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company's business and financial results. Specifically, defendants downplayed and concealed IndyMac's growing exposure to non-performing assets, particularly loans in its pay-option adjustable-rate mortgage ("Option ARM") and homebuilder construction portfolios, and made numerous positive representations regarding the Company's capital position to alleviate investors' fears concerning the Company's capital erosion. As a result of defendants' false statements, IndyMac stock traded at artificially inflated prices during the Class Period, reaching a Class Period high of $24.55 per share in October 2007.
Then on May 12, 2008, IndyMac announced its first quarter 2008 financial results, including a net loss of $184.2 million, or ($2.27) per share, compared with net earnings of $52.4 million, or $0.70 per share, in the first quarter of 2007. On this news, IndyMac's stock dropped to close at $2.32 per share - a two-day decline of $1.11 per share, or 32%, and a decline of 91% from $24.55 per share on October 2, 2007.
According to the complaint, the true facts, which were known by the defendants but concealed from the investing public during the Class Period, were as follows: (a) the Company was not adequately reserving for its losses on mortgage-related assets in violation of generally accepted accounting principles; (b) the Company had far greater exposure to anticipated losses and defaults concerning its book of business related to its homebuilder and Option ARM portfolios than it had previously disclosed; (c) the Company's capital base was not adequate enough to withstand the significant deterioration in the credit and real estate markets and could jeopardize the Company's status as "well capitalized;" (d) IndyMac had not adequately reserved for Option ARMs; and (e) given the Company's exposure to the increased volatility in the credit and real estate markets, the Company had no reasonable basis to make projections about its earnings.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
