| Company: | RAIT Financial Trust |
| Ticker Symbol: | NYSE: RAS |
| Class Period:: | January 10, 2007 to July 31, 2007 |
| Date Filed: | Aug-01-07 |
| Lead Plaintiff Deadline: | Sep-30-07 |
| Court: | Eastern District, PA |
| Allegations: |
A class action lawsuit has been commenced in the United States District Court for the Eastern District of Pennsylvania on behalf of purchasers of the securities of RAIT Financial Trust ("RAIT" or the "Company") (NYSE:RAS) between January 10, 2007 and July 31, 2007, inclusive (the "Class Period"), seeking to pursue remedies under the Securities Exchange Act of 1934 (the "Exchange Act"). RAIT had an offering of 10 million shares of its common stock on January 10, 2007.
The complaint charges RAIT and certain of its officers and trustees with violations of the Federal Securities Laws. RAIT is a real estate investment trust, providing comprehensive debt financing options to the real estate industry including bridge and mezzanine loans, preferred equity investments, trust preferred securities ("TruPS") and subordinated debt for private and corporate owners of commercial real estate, REITs and real estate operating companies and their intermediaries throughout the United States and Europe.
According to the complaint, during the Class Period, defendants issued materially false and misleading statements that misrepresented and failed to disclose (i) RAIT's financial relationship with American Home Mortgage ("AHM"); that (ii) the payment to RAIT by American Home Mortgage of the TruPS was in jeopardy, which could result in at least a net exposure of $95 million, or $1.56 per share of book value; and that (iii) RAIT had failed to adequately reserve for the risk of nonpayment of American Home Mortgage and the loss in value of the associated securities in an amount of approximately $95 million.
On July 31, 2007, RAIT surprised the market by announcing that it did not receive payment from AHM of trust preferred securities due on July 30, 2007 from AHM, resulting in at least a net equity exposure of $95 million. The price of RAIT's common stock declined in reaction to this news from a close on July 30, 2007 of $16.06 to a close on July 31, 2007 of $10.36.
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 complaint charges RAIT and certain of its officers and trustees with violations of the Federal Securities Laws. RAIT is a real estate investment trust, providing comprehensive debt financing options to the real estate industry including bridge and mezzanine loans, preferred equity investments, trust preferred securities ("TruPS") and subordinated debt for private and corporate owners of commercial real estate, REITs and real estate operating companies and their intermediaries throughout the United States and Europe.
According to the complaint, during the Class Period, defendants issued materially false and misleading statements that misrepresented and failed to disclose (i) RAIT's financial relationship with American Home Mortgage ("AHM"); that (ii) the payment to RAIT by American Home Mortgage of the TruPS was in jeopardy, which could result in at least a net exposure of $95 million, or $1.56 per share of book value; and that (iii) RAIT had failed to adequately reserve for the risk of nonpayment of American Home Mortgage and the loss in value of the associated securities in an amount of approximately $95 million.
On July 31, 2007, RAIT surprised the market by announcing that it did not receive payment from AHM of trust preferred securities due on July 30, 2007 from AHM, resulting in at least a net equity exposure of $95 million. The price of RAIT's common stock declined in reaction to this news from a close on July 30, 2007 of $16.06 to a close on July 31, 2007 of $10.36.
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.
