PHILADELPHIA, Aug. 1, 2007 (PRIME NEWSWIRE) -- Law Offices Bernard M. Gross, P.C. today announced that a class action lawsuit has been commenced in the United States District Court for the Eastern District of Pennsylvania on behalf of purchasers of the securities of RAIT Financial Trust ("RAIT" or the "Company") (NYSE:RAS) between January 10, 2007 and July 31, 2007, inclusive (the "Class Period"), seeking to pursue remedies under the Securities Exchange Act of 1934 (the "Exchange Act"). RAIT had an offering of 10 million shares of its common stock on January 10, 2007.
If you wish to serve as lead plaintiff, you must move the Court no later than September 30, 2007. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please 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 view a copy of the complaint as filed or to join this action. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges RAIT and certain of its officers and trustees with violations of the Federal Securities Laws. RAIT is a real estate investment trust, providing comprehensive debt financing options to the real estate industry including bridge and mezzanine loans, preferred equity investments, trust preferred securities ("TruPS") and subordinated debt for private and corporate owners of commercial real estate, REITs and real estate operating companies and their intermediaries throughout the United States and Europe.
According to the complaint, during the Class Period, defendants issued materially false and misleading statements that misrepresented and failed to disclose (i) RAIT's financial relationship with American Home Mortgage ("AHM"); that (ii) the payment to RAIT by American Home Mortgage of the TruPS was in jeopardy, which could result in at least a net exposure of $95 million, or $1.56 per share of book value; and that (iii) RAIT had failed to adequately reserve for the risk of nonpayment of American Home Mortgage and the loss in value of the associated securities in an amount of approximately $95 million.
On July 31, 2007, RAIT surprised the market by announcing that it did not receive payment from AHM of trust preferred securities due on July 30, 2007 from AHM, resulting in at least a net equity exposure of $95 million. The price of RAIT's common stock declined in reaction to this news from a close on July 30, 2007 of $16.06 to a close on July 31, 2007 of $10.36.
Plaintiff seeks to recover damages on behalf of all those who purchased the securities of RAIT Financial Trust between January 10, 2007 and July 31, 2007. The plaintiff is represented by Law Offices Bernard M. Gross P.C., a Philadelphia law firm, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud. In order to serve as lead plaintiff, however, you must meet certain legal requirements.
If you wish to discuss this action or have any questions concerning this Notice or 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 or
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/