HARTFORD, Conn., Oct. 3, 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 a lawsuit seeking class action status has been filed in the United States District Court for the Southern District of New York on behalf of all persons who purchased the common stock of E-TRADE Financial Corporation ("E-TRADE") (Nasdaq:ETFC) between December 14, 2006 and September 25, 2007, inclusive (the "Class Period").
The complaint charges that E-TRADE and certain of its officers and directors violated federal securities laws. Specifically, defendants issued materially false and misleading statements that misrepresented and failed to disclose the following: (i) that the Company was experiencing a rise in delinquency rates in its mortgage and home equity portfolios; (ii) that the Company failed to timely record an impairment on its mortgage and home equity portfolios; (iii) that the Company's securities portfolio, which includes assets backed by mortgages, was materially overvalued; and (iv) that based on the foregoing, Defendants' positive statements about the Company's earnings and prospects were lacking in a reasonable basis at all times.
On September 17, 2007, the Company announced that it will exit the wholesale mortgage and it is revising its guidance for 2007, among other things. On this news, shares of the Company's stock fell $2.32 per share, or over 15%, over the next six trading days as the investing public digested the news.
If you are a member of the class, you may, no later than December 3, 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).
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.