HARTFORD, Conn., Nov. 1, 2007 (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 it has filed a lawsuit seeking class action status in the United States District Court for the District of Connecticut on behalf of all persons who purchased or otherwise acquired the common stock of CBRE Realty Finance, Inc. ("CBRE" or the "Company") (NYSE:CBF) pursuant and/or traceable to the Company's initial public offering (the "IPO" or the "Offering") on or about September 29, 2006 through August 6, 2007, (the "Class Period").
The Complaint charges that CBRE, a commercial real estate specialty finance company, and certain of its officers and directors violated federal securities laws. On or about September 26, 2006, CBRE filed with the SEC a Form S-11/A Registration Statement (the "Registration Statement"), for the IPO. On or about September 29, 2006, the Prospectus (the "Prospectus") with respect to the IPO, which forms part of the Registration Statement, became effective. The complaint alleges that the Registration Statement and Prospectus failed to disclose that at the time of the IPO more than $20 million in loans on the company's books were impaired and should have been written down but were not.
On August 6, 2007, CBRE issued a press release announcing its financial results for the second quarter of 2007, the period ending June 30, 2007. The Company reported that it was taking a $7.8 million impairment charge due to a write-down on a foreclosed asset. On this news, the price of CBRE stock declined to $4.25 per share, 70% lower than the IPO price of $14.50.
If you are a member of the class, you may, no later than December 31, 2007, 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).
For more information about the case, its claims, and your rights, please contact Schatz Nobel Izard P.C. toll-free at (800) 797-5499, or by e-mail at firm@snilaw.com. To view a copy of the complaint filed by Schatz Nobel Izard P.C. or for more information about class action cases and Schatz Nobel Izard, please visit our website: www.snilaw.com.