PHILADELPHIA, Aug. 2, 2007 (PRIME NEWSWIRE) -- Law Offices Bernard M. Gross, P.C. announced that a class action lawsuit has been commenced in the United States District Court for the Eastern District of New York, Civil Action No. 07-3193, on behalf of purchasers of the securities of American Home Mortgage Investment Corp. ("American Home") (NYSE:AHM) between July 26, 2006 and July 27, 2007, inclusive (the "Class Period"), seeking to pursue remedies under the Securities Exchange Act of 1934 (the "Exchange Act"). The case is pending before the Honorable Thomas C. Platt.
If you wish to serve as lead plaintiff, you must move the Court no later than September 29, 2007. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, contact plaintiff's counsel, Deborah R. Gross or Susan R. Gross at 866-561-3600 or 215-561-3600 or via email at debbie@bernardmgross.com or susang@bernardmgross.com. If you are a member of this class, please contact the Law Offices Bernard M. Gross to receive a copy of the complaint as filed or to join this action.
The complaint charges American Home ("AHM") and Michael Strauss, Chief Executive Officer with violations of Sections 10(b) and 20(a) of the Exchange Act and Rule 10b-5, by issuing a series of materially false and misleading statements to the market during the Class Period that misrepresented and failed to disclose that: (i) AHM's credit related expenses were increasing dramatically by reason of its three month "timely repayment" warranty granted by AHM to buyers who purchased stated income loans with high loan to value ratios; (ii) AHM was experiencing an increasing level of delinquencies on loans which were subject to AHM's "timely repayment" warranty which were depressing its earnings and threatening its historical level of dividends; (iii) AHM was experiencing increasing difficulties in selling its loans and was required to decrease prices, reducing margins and profits; (iv) AHM was overstating its financial results by failing to adequately reserve for "timely repayment" warranties loans and by failing to adequately write-down the value of certain of the loans in its portfolio as these loans declined substantially in value; and (v) AHM's sources of cash were drying up and it was required to provide additional cash under its warehouse lines of credit as the value of the loans which collateralized those borrowings fell dramatically.
Plaintiff seeks to recover damages on behalf of all those who purchased the securities of American Home Mortgage Investment Corp. between July 26, 2006 and July 27, 2007. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters,
Please contact: Law Offices Bernard M. Gross, P.C.
Susan R. Gross, Esq.
Deborah R. Gross, Esq.
The Wanamaker Bldg
100 Penn Sq. East, Suite 450
Philadelphia, PA 19103
Telephone: 866-561-3600 (toll free)
or 215-561-3600
E-mail: susang@bernardmgross.com ;
debbie@bernardmgross.com
Website: http://www.bernardmgross.com
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca