An investor has sued Technical Olympic, Inc. ("Technical Olympic" or the "Company") (NYSE: TOA) in federal court, accusing the company of securities law violations, Berman DeValerio Pease Tabacco Burt & Pucillo announced today.
Berman DeValerio (www.bermanesq.com) filed a class action complaint Dec. 29, 2006 in the Southern District of Florida on behalf of shareholders. The complaint, filed as 06-cv-61938-civ-Graham, seeks damages for violations of federal securities laws on behalf of all investors who acquired Technical Olympic securities from August 1, 2005 through and including November 6, 2006 (the "Class Period"). Technical Olympic designs, builds and markets residences in various regions of the country.
To receive a copy of the complaint, you may contact the court, call Berman DeValerio at (561) 835-9400, or go to http://www.bermanesq.com/pdf/2006_12_29_1_Complaint_jlp%20(2).pdf and download a copy.
The lawsuit claims that Technical Olympic and a number of individual defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, 15 U.S.C. Sections 78j (b) and 78t(a) and Rules 10b-5 promulgated thereunder by the Securities Exchange Commission, 17 C.F.R. Section 240.10b-5.
According to the complaint, Technical Olympic misrepresented the extent to which it was liable as a guarantor of debt incurred by a joint venture to which the Company was a party, thereby inflating the price of Technical Olympic's common stock. Specifically, the complaint alleges that on August 1, 2005 Technical Olympic entered into a joint venture to purchase and operate the homebuilding businesses of Transeastern Properties, Inc. (the "Transeastern Joint Venture"). At the time, the complaint alleges, Technical Olympic represented that the Transeastern Joint Venture would add considerably to future profits without any recourse against the Company should the Transeastern Joint Venture default on its considerable debt. According to the complaint, this statement was false. Technical Olympic was later forced to admit its potential liability as a guarantor of the joint venture debt, as well as a severe decline in sales in the Florida market in which the Transeastern Joint Venture operated, resulting in substantial declines in the shares of Technical Olympic stock.
If you acquired Technical Olympic securities from August 1, 2005, through and including November 6, 2006, you may wish to contact the following attorneys at Berman DeValerio Pease Tabacco Burt & Pucillo to discuss your rights and interests.
Michael J. Pucillo, Esq. Jay W. Eng, Esq. 222 Lakeview Avenue, Suite 900 West Palm Beach, FL 33401 (561) 835-9400 Lawfla@bermanesq.com
If you wish to apply to be the lead plaintiff in this action, a motion on your behalf must be filed with the court no later than February 12, 2007. You may contact the attorneys at Berman DeValerio to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action, or you may submit information online at http://www.bermanesq.com/Securities/Signup1.asp?caseid=587. Please note, you may also retain counsel of your choice and need not take any action at this time to be a class member.
Berman DeValerio Pease Tabacco Burt & Pucillo prosecutes class actions nationwide on behalf of institutions and individuals, chiefly victims of securities and antitrust law violations. The firm has 37 lawyers in Boston, San Francisco, and West Palm Beach.
Jay W. Eng, Esq.
Michael J. Pucillo, Esq.