HARTFORD, Conn., Jan. 28, 2008 (PRIME NEWSWIRE) -- The law firm of Schatz Nobel Izard P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Southern District of Florida on behalf of all persons who purchased the common stock of Levitt Corp. ("Levitt" or the "Company") (NYSE:LEV) between January 31, 2007 and August 14, 2007, inclusive (the "Class Period").
The Complaint alleges that Levitt and certain of its officers and directors violated federal securities laws. On January 31, 2007, Levitt announced a merger with BFC Financial Corp ("BFC"). Based on BFC stock's closing price on the previous trading day, the proposed transaction valued Levitt stock at $14.41 per share -- a premium of 32 percent over the closing price of $10.88 per share on the previous trading day. During the Class Period, defendants failed to disclose the following: (i) that the Company's Levitt and Sons subsidiary was in worse financial condition than represented and was saddled with unneeded land which would not be feasible to develop for some time. Furthermore, Levitt and Sons was struggling to complete projects it had already begun and was often failing to complete construction of homes that it had already sold; (ii) Levitt was materially overstating its financial results because it was failing to timely record an impairment in the value of its homebuilding inventory at Levitt and Sons; (iii) Levitt's loans to Levitt and Sons would not be recovered; and (iv) that Levitt and Sons was insolvent.
On August 15, 2007, Levitt announced that the merger agreement with BFC had been terminated. On this news, Levitt's stock fell $0.79 per share to close at $2.96 per share. Subsequently, on November 9, 2007, it was announced that Levitt and Sons filed for bankruptcy.
If you are a member of the class, you may, no later than March 25, 2008, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz Nobel Izard P.C. has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz Nobel Izard P.C. toll-free at (800) 797-5499, or by e-mail at firm@snilaw.com, or visit our website: www.snilaw.com.