| Company: | Thornburg Mortgage, Inc. |
| Ticker Symbol: | NYSE: TMA |
| Class Period:: | October 6, 2005 to August 17, 2007 |
| Date Filed: | Aug-21-07 |
| Lead Plaintiff Deadline: | Oct-22-07 |
| Court: | District, NM |
| Allegations: |
A class action lawsuit has been filed in the United States District Court, District of New Mexico, on behalf of all persons who purchased the common stock of Thornburg Mortgage, Inc. ("TMI" or the "Company") (NYSE:TMA) between October 6, 2005 and August 17, 2007, inclusive (the "Class Period"), against the Company and certain of its officers and directors, alleging violations under Section 10(b) of the Securities Exchange Act of 1934 (the "Exchange Act"), 15 U.S.C. §78j(b) and the rules and regulations promulgated thereunder by the SEC, including Rule 10b-5, 17 C.F.R. §240.10b-5 (the "Class").
The Complaint alleges that throughout the Class Period, defendants issued numerous, positive financial statements, annual and quarterly financial reports filed with the SEC, press releases, and other public statements that described the Company's financial performance. The Complaint further alleges that these public statements were materially false and misleading because they misrepresented and failed to disclose the following adverse facts, among others: (a) that the Company was facing increasing margin calls; (b) that its available leverage had significantly diminished; (c ) that its financial situation had deteriorated to the point where it must sell certain assets; and, (d) that as a result of the foregoing the Company reported overstated financial results.
As a result of defendants' false statements, TMI's stock traded at artificially inflated price during the Class Period, reaching a high of $30.64 per share on June 17, 2005.
On August 20, 2007, before the market opened, the Company published a press release over the Business Wire detailing that it was forced to sell $20.5 billion of its top-rated mortgage backed securities to boost its liquidity. This announcement was made in the wake of the August 14 announcement that the Company had to stop funding loans due to the credit crunch. The Company had been unable to repay nearly $8.4 billion of commercial paper outstanding as of June 30, 2007 because buyers of the paper demanded terms and covenants that the Company was either unwilling or unable to satisfy.
As a result of these disclosures, the Company's price per share fell $1.73 by midday trading, a 9% decline over its previous close on extremely heavy volume.
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 alleges that throughout the Class Period, defendants issued numerous, positive financial statements, annual and quarterly financial reports filed with the SEC, press releases, and other public statements that described the Company's financial performance. The Complaint further alleges that these public statements were materially false and misleading because they misrepresented and failed to disclose the following adverse facts, among others: (a) that the Company was facing increasing margin calls; (b) that its available leverage had significantly diminished; (c ) that its financial situation had deteriorated to the point where it must sell certain assets; and, (d) that as a result of the foregoing the Company reported overstated financial results.
As a result of defendants' false statements, TMI's stock traded at artificially inflated price during the Class Period, reaching a high of $30.64 per share on June 17, 2005.
On August 20, 2007, before the market opened, the Company published a press release over the Business Wire detailing that it was forced to sell $20.5 billion of its top-rated mortgage backed securities to boost its liquidity. This announcement was made in the wake of the August 14 announcement that the Company had to stop funding loans due to the credit crunch. The Company had been unable to repay nearly $8.4 billion of commercial paper outstanding as of June 30, 2007 because buyers of the paper demanded terms and covenants that the Company was either unwilling or unable to satisfy.
As a result of these disclosures, the Company's price per share fell $1.73 by midday trading, a 9% decline over its previous close on extremely heavy volume.
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.
