MINNEAPOLIS, July 17, 2007 (PRIME NEWSWIRE) -- Charles H. Johnson today announced that it has commenced an investigation against NovaStar Financial, Inc. ("NovaStar") for potential violations of the Employee Retirement Income Security Act of 1974 ("ERISA"). The investigation focuses on the NovaStar Financial, Inc. 401K Savings Plan (the "Plan").
Charles H. Johnson's investigation focuses on concerns that NovaStar and other administrators of the Plan may have breached their ERISA mandated fiduciary duties of loyalty and caution to participants and beneficiaries of the Plan. A breach may have occurred if the fiduciaries failed to manage the assets of the Plan cautiously and loyally by investing the assets in Company stock when it was no longer a sensible investment for participants' retirement savings.
If you are a member of the NovaStar Financial, Inc. 401K Savings Plan and purchased stock in the Plan, or have any questions concerning this notice or your rights with respect to this matter, please contact:
Charles H. Johnson & Associates Neil Eisenbraun, Esq. (651) 633-5685 cjohnsonlaw@gmail.com 2599 Mississippi Street New Brighton, MN 55112