HARTFORD, Conn., June 12, 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 Central District of California on behalf of all those who purchased the common stock of IndyMac Bancorp, Inc. ("IndyMac" or the "Company") (NYSE:IMB) between August 16, 2007 and May 12, 2008, inclusive (the "Class Period").
The Complaint charges that IndyMac, a holding company for IndyMac Bank, F.S.B., a hybrid thrift/mortgage bank, and certain of its officers and directors violated federal securities laws by issuing materially false and misleading statements regarding the Company's business and financial results. Specifically, defendants concealed the following facts from the investing public: (i) IndyMac was not adequately reserving for its losses on mortgage-related assets in violation of generally accepted accounting principles; (ii) the Company had far greater exposure to anticipated losses and defaults concerning its book of business related to its homebuilder and pay-option adjustable-rate mortgage ("Option ARM") portfolios than it had previously disclosed; (iii) the Company's capital base was not adequate enough to withstand the significant deterioration in the credit and real estate markets and could jeopardize the Company's status as "well capitalized;" (iv) IndyMac had not adequately reserved for Option ARMs; and (v) given the Company's exposure to the increased volatility in the credit and real estate markets, the Company had no reasonable basis to make projections about its earnings.
On May 12, 2008, IndyMac announced its first quarter 2008 financial results, including a net loss of $184.2 million, or ($2.27) per share, compared with net earnings of $52.4 million, or $0.70 per share, in the first quarter of 2007. On this news, IndyMac's stock dropped to close at $2.32 per share -- a two-day decline of $1.11 per share, or 32%, and a decline of 91% from $24.55 per share on October 2, 2007.
If you are a member of the class, you may, no later than August 11, 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.
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.