A settlement has been proposed by the parties regarding In re American Home Mortgage Securities Litigation, 07-MD-1898 (TCP), a class action lawsuit in the United States District Court for the Eastern District of New York concerning stock purchases and/or acquisitions of American Home on and between July 19, 2005 and April 30, 2007, a period of time known as the “Class Period".
Lead Plaintiffs allege that Defendants, during the Class Period, provided false or misleading public information in violation of federal securities laws, the effect of which artificially inflated American Home stock prices, and, that subsequent declines in stock prices caused damages to Plaintiffs. Settling Defendants state the decline in the prices of American Home common and preferred stock alleged in the Action did not result from the disclosure of any information that Lead Plaintiffs allege was misrepresented or wrongfully withheld.
Subject to Court approval, the settlement creates three funds totaling $37,250,000, to be deposited in an interest-bearing escrow accounts (the “Settlement Funds,” and known collectively as the “Settlement Funds”). These funds will be used to resolve all claims arising from the purchase or acquisition of American Home common and/or preferred stock during the Class Period. The Settlement Funds will be distributed, if at all, to qualified claimants according to the Plan of Allocation explained in detail within the Notice.
The Court has not ruled on the merits of the positions taken by either Bond Plaintiffs or Defendants.
To reduce the time, expense, and uncertainty of trial, the parties submitted a Proposed Settlement for the Court’s approval. A Settlement Hearing will be held on January 13, 2010 at 1:30 p.m. before the Honorable Thomas C. Platt, at the United States District Court for the Eastern District of New York, Long Island Courthouse, Courtroom 1040, Central Islip, New York, NY 11722. The Court reserves the right to approve the Settlements at or after the Settlement Hearing without further notice to the members of the Class (including the Offerings Subclass).
The information provided above is in summary form and not intended as a complete explanation of your rights. For this, please review the documents provided in the Case Documents section.
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