NEW YORK, Sept. 10 /PRNewswire/ — Abbey Spanier Rodd & Abrams, LLP commenced a Class Action lawsuit in the United States District Court for the Southern District of New York (07-Civ-7897) on behalf of a class (the “Class”) of all persons who purchased or acquired securities of Thornburg Mortgage, Inc. (“Thornburg Mortgage” or the “Company”) (NYSE: TMA) between April 19, 2007 and August 14, 2007 inclusive (the “Class Period”).
If you would like to discuss this action please contact Nancy Kaboolian at nkaboolian (at) abbeyspanier (dot) com. The Complaint alleges that defendants violated the federal securities laws by issuing a series of material misrepresentations to the market during the Class Period thereby artificially inflating the price of Thornburg Mortgage securities. More specifically, the Complaint alleges that defendants 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.
On August 14, 2007, Thornburg Mortgage announced that its Board of Directors had rescheduled the payment date of the Company’s second quarter common dividend of $0.68 per share to September 17, 2007 and that the Company was unable to fund its mortgage assets in the commercial paper and the asset-backed securities markets. On August 20, 2007, the Company announced that it was forced to sell $20.5 billion of its top-rated mortgage backed securities to boost its liquidity. 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.
In reaction to these shocking disclosures, Thornburg Mortgage’s stock dropped from $21.23 per share on August 9, 2007 to $14.28 on August 13, 2007 to $7.61 on August 14, 2007.
Plaintiff seeks to recover damages on behalf of all those who purchased or otherwise acquired Thornburg Mortgage securities during the Class Period. If you purchased or otherwise acquired Thornburg Mortgage securities during the Class Period, and either lost money on the transaction or still hold the securities, you may wish to join in the action to serve as lead plaintiff. If you purchased Thornburg Mortgage securities during the Class Period, you may, no later than October 22, 2007 request that the Court appoint you as lead plaintiff.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as “lead plaintiffs.”
The attorneys at Abbey Spanier have extensive experience in securities class action cases, and have played lead roles in major cases resulting in the recovery of hundreds of billions of dollars to investors. If you would like to discuss this action or if you have any questions concerning this Notice or your rights as a potential class member or lead plaintiff, you may contact:
Nancy Kaboolian, Esq. or
Susan Lee
Abbey Spanier Rodd & Abrams, LLP
212 East 39th Street
New York, New York 10016
(212) 889-3700
(800) 889-3701 (Toll Free)
Or e-mail them at slee (at) abbeyspanier (dot) com or nkaboolian (at) abbeyspanier (dot) com
SOURCE
Abbey Spanier Rodd & Abrams, LLP
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