| Company: | Opteum Inc. |
| Ticker Symbol: | NYSE: OPX |
| Class Period: | November 3, 2005 to May 10, 2007 |
| Initial Public Offering: | September 2004 or December 2004 |
| Date Filed: | Sep-20-07 |
| Lead Plaintiff Deadline: | Nov-19-07 |
| Court: | Southern District, FL |
| Allegations: |
A class action lawsuit has been filed against Opteum Inc. ("Opteum" or the "Company") (NYSE: OPX) in the United States District Court for the Southern District of Florida, on behalf of shareholders who purchased the common stock of the Company in connection with, or traceable to, its September 2004 Initial Public Offering and/or the December 2004 Secondary Offering (the "Offerings"), and including shareholders who purchased shares in the open market between November 3, 2005 and May 10, 2007, inclusive (the "Class Period"). No class has yet been certified in this action.
The Company and certain of its officers, directors and underwriters are charged with including false and misleading statements in the registration statements and proxy-prospectuses issued in connection with the Offerings in direct violation of the Securities Act of 1933 (the "Securities Act"). Additionally, the Company and certain of its officers and directors are charged with making a series of materially false and misleading statements related to the Company's business and operations in violation of the Securities Exchange Act of 1934 (the "Exchange Act").
The Complaint alleges that defendants raised over $150 million by issuing materially false and misleading Registration Statements in September and December 2004. Particularly, the Complaint asserts that the Company failed to disclose its inability to grow revenues and expand profitability in the face of increasing interest costs, and in the face of conditions that already existed at that time. While defendants predicated the Company's business and operations on investing only in high-grade government backed securities, collateralized by prime mortgages, in fact, defendants failed to disclose at the time of the IPO, that this model could not succeed in the face of rising interest costs. Rather than admit the problems that existed at the time of the IPO, defendants represented that the Company employed significant self-management and analysis tools that allowed it to control costs and expand profitability.
Moreover, by mid-2005, as interest expense rose to over 75% of interest income and as the Company's near-term share price declined, it was more obvious to defendants that their plan was failing. Yet, again, rather than admit to investors the problems inherent in the Company, in September 2005, defendants announced the acquisition of Opteum Financial Services ("OFS"). As investors ultimately learned, the acquisition of OFS represented a knowing and reckless departure from the risk-adverse investment plan adopted months earlier at the time of the IPO, and it entailed the acquisition of a company that bet on very high risk, low-grade loans to subprime and alternate documentation borrowers.
It was only on May 10, 2007, however, the final day of the Class Period, that investors learned that the acquisition of OFS represented a complete abandonment by defendants of the Company's risk-management controls and procedures, and that the gamble made by defendants and lost, had resulted in huge net losses, asset write-downs and negative value adjustments.
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.
The Company and certain of its officers, directors and underwriters are charged with including false and misleading statements in the registration statements and proxy-prospectuses issued in connection with the Offerings in direct violation of the Securities Act of 1933 (the "Securities Act"). Additionally, the Company and certain of its officers and directors are charged with making a series of materially false and misleading statements related to the Company's business and operations in violation of the Securities Exchange Act of 1934 (the "Exchange Act").
The Complaint alleges that defendants raised over $150 million by issuing materially false and misleading Registration Statements in September and December 2004. Particularly, the Complaint asserts that the Company failed to disclose its inability to grow revenues and expand profitability in the face of increasing interest costs, and in the face of conditions that already existed at that time. While defendants predicated the Company's business and operations on investing only in high-grade government backed securities, collateralized by prime mortgages, in fact, defendants failed to disclose at the time of the IPO, that this model could not succeed in the face of rising interest costs. Rather than admit the problems that existed at the time of the IPO, defendants represented that the Company employed significant self-management and analysis tools that allowed it to control costs and expand profitability.
Moreover, by mid-2005, as interest expense rose to over 75% of interest income and as the Company's near-term share price declined, it was more obvious to defendants that their plan was failing. Yet, again, rather than admit to investors the problems inherent in the Company, in September 2005, defendants announced the acquisition of Opteum Financial Services ("OFS"). As investors ultimately learned, the acquisition of OFS represented a knowing and reckless departure from the risk-adverse investment plan adopted months earlier at the time of the IPO, and it entailed the acquisition of a company that bet on very high risk, low-grade loans to subprime and alternate documentation borrowers.
It was only on May 10, 2007, however, the final day of the Class Period, that investors learned that the acquisition of OFS represented a complete abandonment by defendants of the Company's risk-management controls and procedures, and that the gamble made by defendants and lost, had resulted in huge net losses, asset write-downs and negative value adjustments.
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.
