Berger & Montague, P.C. Files Class Action Lawsuit Against Certain Officers
and a Director of IndyMac Bancorp Inc., Enlarging the Class Period to Begin on
April 26, 2007
PHILADELPHIA, Aug. 1 /PRNewswire-USNewswire/ -- The law firm of Berger &
Montague, P.C. announces it has filed a class action lawsuit, Daniels v. Perry
and Keys, No. 08-cv-085073, in the U.S. District Court for the Central
District of California on behalf of all purchasers of the common stock,
preferred stock and/or preferred units of IndyMac Bancorp Inc. ("IndyMac" or
the "Company") between April 26, 2007 and May 12, 2008, inclusive (the "Class
Period"). (The common stock ticker symbol: IDMC; formerly NYSE: IMB after May
1, 2007; and NYSE: NDE prior to May 1, 2007). This action enlarges the Class
Period to begin earlier than the Class Period in the cases previously filed
that began on August 16, 2007.
The Complaint alleges that IndyMac's Chief Executive Officer Michael W. Perry,
and its former Chief Financial Officer A. Scott Keys ("Defendants"), violated
the Securities Exchange Act of 1934 by issuing a series of materially false
and misleading statements about IndyMac's financial health, including
statements assuring investors that IndyMac, as a prime rather than subprime
lender, would be less affected by the turmoil in the housing, mortgage and
credit markets, that it was prudently managing its risks, that it had prudent
asset quality and that its financial condition was sound. The Complaint
alleges that at the time such statements were made, Defendants knew or
recklessly disregarded that IndyMac was not following prudent or proper loan
origination procedures and that it had ignored guidelines and prudent
practices to originate and securitize below standard mortgage loans, resulting
in increasing delinquencies and defaults and a growing inability to raise
capital by selling and/or securitizing these risky loans. As a result of
Defendants' allegedly false statements, IndyMac's stock traded at inflated
levels throughout the Class Period and its common stock reached a high of
$37.50 per share when the market opened on June 6, 2007.
The truth about IndyMac's financial condition started to be revealed on
November 6, 2007 and continued to May 12, 2008, when IndyMac announced that
"we do not expect that Indymac will be able to return to overall profitability
until the current decline in home prices decelerates. ... and we are not
currently forecasting a return to profitability this year." Defendants also
disclosed that "because of the significant hits we've taken, our capital
ratios clearly have been depleted" and "our non-performing assets have
continued to rise." As a result of Defendants' disclosures on May 12, 2008,
IndyMac's stock dropped to close at $2.32 per share on May 13, 2008 on high
volume, from a close of $3.43 per share on May 9, 2008 - a two-day decline of
$1.11 per share, or 32%.
On July 11, 2008, IndyMac Bank, the majority owned subsidiary and principal
asset of IndyMac, was seized and closed by the Office of Thrift Supervision.
The Federal Deposit Insurance Corporation was appointed receiver of the Bank.
If you purchased or acquired IndyMac common stock, preferred stock and/or
preferred units between April 26, 2007 and May 12, 2008 and sustained losses,
you may, no later than August 11, 2008, request that the Court appoint you as
lead plaintiff. A lead plaintiff is a representative party acting on behalf
of other class members in directing the litigation. If you wish to discuss
this action or your rights as an investor in IndyMac during the Class Period,
please contact Berger & Montague toll free at 1-888-891-2289 or at
investorprotect@bm.net for a more thorough explanation of the lead plaintiff
selection process and the litigation. A copy of the complaint is available
from the Court, or can be viewed on Berger & Montague, P.C.'s website at
www.bergermontague.com. If you have any questions concerning this notice or
your rights with respect to this matter, please contact:
Sherrie R. Savett, Esq.
Barbara A. Podell, Esq.
Kimberly A. Walker, Investor Relations Manager
Berger & Montague, P.C.
1622 Locust Street
Philadelphia, PA 19103
Telephone: 1-888-891-2289 or 215-875-3000
SOURCE Berger & Montague, P.C.
Sherrie R. Savett, Esq., Barbara A. Podell, Esq., or Kimberly A. Walker,
Investor Relations Manager, all of Berger & Montague, P.C., +1888-891-2289,
+1-215-875-3000
