Luminent Mortgage Capital, Inc. - Securities Class Action

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Copyright (c) 2001
Stanford Law School

Luminent Mortgage Capital, Inc. Summary: The original complaint charges defendants with violations of federal securities laws by, among other things, issuing a series of materially false and misleading press releases and SEC filings regarding Luminent's financial results and business prospects. Specifically, the complaint alleges that Luminent failed to disclose: (i) the Company was not sufficiently liquid; (ii) the Company's financial statements and reports were not prepared in accordance with GAAP and SEC rules; and (iii) that defendants lacked any reasonable basis to claim that the Company had ample liquidity and that the dividend payments were secure. As a result, the price of the Company's common stock was artificially inflated throughout the Class Period. On August 6, 2007, however, defendants shocked the market when they announced that the Company was cancelling the payment of its dividend. In response to the announcement, Luminent's share price dropped to a low of $3.75 on August 6, 2007 before trading was halted. It then opened on August 7, 2007 at $0.50, representing a drop of over 85%.

The Court consolidated several class actions, and on November 21, 2007, Judge Phyllis J. Hamilton appointed Lead Plaintiff and Lead Counsel. On February 15, 2008, the lead plaintiffs filed a Consolidated Class Action Complaint. On March 31, 2008, the defendants responded by filing a motion to dismiss the Consolidated Complaint. On September 10, 2008, defendant Luminent Mortgage Capital, Inc. filed a notice of Voluntary Petition and Imposition of Automatic Stay due to bankruptcy proceedings. On December 10, 2008, the plaintiff filed a proposed order for preliminary approval of settlement and providing for notice.

On January 20, 2009, the District Court Judge Phyllis J. Hamilton signed the Order preliminarily approving the settlement and providing for notice. A hearing shall be held before this Court on April 29, 2009 to determine whether the proposed Settlement of the Action on the terms and conditions provided for in the Stipulation is fair, reasonable and adequate to the Settlement Class and should be approved by the Court. The proposed settlement is in the amount of $8,000,000 in cash.

On April 29, 2009, Judge Hamilton granted the motion for attorney fees and expenses and awarded plaintiff’s counsel 25% of the settlement fund and reimbursement of $105,302.15 in expenses. That day, the Court approved the settlement and dismissed the action with prejudice.

INDUSTRY CLASSIFICATION:
SIC Code: 6798
Sector: Services
Industry: Real Estate Operations

COMPANY/ISSUER NAME:	Luminent Mortgage Capital, Inc.
COMPANY/ISSUER TICKER:	LUM
COMPANY WEBSITE:	http://www.luminentcapital.com

FIRST IDENTIFIED COMPLAINT IN THE DATABASE

Joseph Leone, et al. v. Luminent Mortgage Capital, Inc., et al.

COURT: N.D. California	DOCKET NUMBER: 07-CV-04073
JUDGE NAME: Hon. Joseph C. Spero
DATE FILED: 08/08/2007	SOURCE: Notice of Filing
CLASS PERIOD START: 07/24/2007	CLASS PERIOD END: 08/06/2007
TYPE OF COMPLAINT: Complaint (Unamended and Unconsolidated)
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Abraham, Fruchter & Twersky (New York, 42 Street) 60 East 42 Street, New York, NY, 10021 (voice) 212.687.6655, (fax) , Audet & Partners, LLP 221 Main Street Suite 1460, San Francisco, CA, 94105 (voice) 415.982.1776, (fax) 415.576.1776, info@audetlaw.com Berger & Montague PC 1622 Locust Street, Philadelphia, PA, 19103 (voice) 800.424.6690, (fax) 215.875.4604, investorprotect@bm.net Coughlin Stoia Geller Rudman & Robbins LLP (San Diego) 655 West Broadway, Suite 1900, San Diego, CA, 92101 (voice) 619.231.1058, (fax) 619.231.7423, info@csgrr.com/ Faruqi & Faruqi LLP (New York) 369 Lexington. Avenue, 10th Floor , New York, , (voice) 212..983.9330, (fax) 212..983.9331, Gardy & Notis, LLP 440 Sylvan Avenue, Englewood Cliffs, NJ, 07632 (voice) 201-567-7377, (fax) 201-567-7337, info@gardylaw.com Law Offices of Marc S. Henzel (Bala Cynwyd) 273 Montgomery Ave. Suite 202, Bala Cynwyd, PA, 19004 (voice) 610.660.8000, (fax) 610.660.8080, securitiesfraud@comcast.net Lerach Coughlin Stoia Geller Rudman & Robbin (San Francisco) 100 Pine Street, Suite 2600, San Francisco, CA, 94111 (voice) 415.288.4545, (fax) 415.288.4534, info@lerachlaw.com Lerach Coughlin Stoia Geller Rudman & Robbins LLP (San Diego) 655 West Broadway, Suite 1900, San Diego, CA, 92101 (voice) 619.231.1058, (fax) 619.231.7423, Schiffrin Barroway Topaz & Kessler, LLP (Walnut Creek) 2125 Oak Grove Road, Suite 120, Walnut Creek, CA, 94598 (voice) 925.945.0200, (fax) 925.945.8792, info@sbtklaw.com Stull, Stull & Brody (New York) 6 East 45th Street, New York, NY, 10017 (voice) 310.209.2468, (fax) 310.209.2087, SSBNY@aol.com _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 11

DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT
Class Action Complaint for Violations of Federal Securities Laws - Jury Trial Demanded
Type: Complaint		Date on the document: 08/08/2007
Certificate of Service
Type: Other		Date on the document: 11/07/2007
Reply Declaration Of Allen Dayton In Support Of Motion By Southern For Appointment Of Lead Plaintiff And Approval Of Lead Counsel
Type: Declaration		Date on the document: 11/07/2007
Southern's Reply In Support Of Motion For Appointment As Lead Plaintiff And Approval Of Its Selection Of Lead Counsel
Type: Other		Date on the document: 11/07/2007
William F. Kornfeld, Jr.'s Reply Memorandum In Support Of His Motion For Appointment Of Lead Plaintiff And Lead Counsel
Type: Memorandum		Date on the document: 11/07/2007
Statement Of Non-Opposition By William F. Kornfeld, Jr. Regarding Appointment Of Lead Plaintiff(s) And Lead Counsel Pursuant To Section 21D Of The Securities Exchange Act Of 1934
Type: Other		Date on the document: 11/20/2007
Order Granting Southern's Motion For Appointment As Lead Plaintiff And Approval Of Lead Counsel
Type: Order		Date on the document: 11/21/2007

REFERENCE COMPLAINT

In Re: Luminent Mortgage Capital, Inc. Securities Litigation

COURT: N.D. California	DOCKET NUMBER: 07-CV-04073
JUDGE NAME: Hon. Phyllis J. Hamilton
DATE FILED: 02/15/2008	SOURCE: Docket
CLASS PERIOD START: 06/25/2007	CLASS PERIOD END: 08/06/2007
TYPE OF COMPLAINT: Consolidated Complaint
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Lowey, Dannenberg, Bemporad & Selinger, P.C. 1 North Lexington Avenue, 11th Floor, White Plains, NY, 10601-1714 (voice) 914.997.0500, (fax) 914.997.0035, ldbs@wesetnet.com _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 1

DOCUMENTS FOR THE REFERENCE COMPLAINT
Consolidated Class Action Complaint
Type: Complaint		Date on the document: 02/15/2008
Defendants' Notice Of Motion And Motion To Dismiss The Consolidated Complaint
Type: Motion		Date on the document: 3/31/2008
Defendants' Request For Judicial Notice In Support Of Their Motion To Dismiss The Consolidated Complaint
Type: Other		Date on the document: 3/31/2008
Proof Of Service Re Posting To The Securities Class Action Clearing House
Type: Other		Date on the document: 3/31/2008
Lead Plaintiff's Memorandum Of Points And Authorities In Opposition To Motion To Dismiss The Consolidated Complaint
Type: Memorandum		Date on the document: 6/5/2008
Lead Plaintiff's Request For Judicial Notice In Opposition To Defendants' Motion To Dismiss The Consolidated Complaint
Type: Other		Date on the document: 6/5/2008
Notice Of Filing Voluntary Petition And Imposition Of Automatic Stay (11 U.S.C. Section 362(A))
Type: Notice		Date on the document: 09/10/2008
Order
Type: Order		Date on the document: 09/12/2008
[Proposed] Order Preliminarily Approving Settlement And Providing For Notice
Type: Order		Date on the document: 12/10/2008
Order Preliminarily Approving Settlement And Providing For Notice
Type: Order		Date on the document: 01/20/2009
Application Of Lead Plaintiff And Memorandum Of Points And Authorities In Support Of Final Approval Of Settlement, The Notice And The Plan Of Allocation
Type: Memorandum		Date on the document: 04/15/2009
Declaration Of David C. Harrison In Support Of All Actions Application For Final Approval Of Settlement, The Notice, The Plan Of Allocation And Award Of Attorneys' Fees And Reimbursement Of Expenses
Type: Declaration		Date on the document: 04/15/2009
[Proposed] Final Judgment And Order Of Dismissal with Prejudice
Type: Order		Date on the document: 04/15/2009
Final Judgment And Order Of Dismissal With Prejudice
Type: Order		Date on the document: 04/29/2009
Order Awarding Attorneys’ Fees And Expenses
Type: Order Approving AF&E		Date on the document: 04/29/2009
U.S. District Court Civil Docket
Type: Docket		Date on the document: 04/29/2009

OTHER DOCUMENTS
Class Action Complaint for Violation of the Federal Securities Laws - Demand for Jury Trial
Case Name and/or Number: Rosenbaum Capital LLC, et al. v. Luminent Mortgage Capital, Inc., et al.
Type: Complaint		Date on the document: 08/09/2007
U.S. District Court Civil Docket
Case Name and/or Number: Rosenbaum Capital LLC, et al. v. Luminent Mortgage Capital, Inc., et al.
Type: Docket		Date on the document: 08/09/2007
Class Action Complaint for Violation of Federal Securities Laws - Jury Trial Demanded
Case Name and/or Number: Howard J. Kaplowitz IRA, et al. v. Luminent Mortgage Capital, Inc., et al.
Type: Complaint		Date on the document: 08/10/2007
U.S. District Court Civil Docket
Case Name and/or Number: Howard J. Kaplowitz IRA, et al. v. Luminent Mortgage Capital, Inc., et al.
Type: Docket		Date on the document: 08/10/2007
Class Action Complaint - Jury Trial Demanded
Case Name and/or Number: PEM Resources LP, et al. v. Luminent Mortgage Capital, Inc., et al.
Type: Complaint		Date on the document: 08/15/2007
Class Action Complaint for Violation of the Federal Securities Laws - Demand for Jury Trial
Case Name and/or Number: Allen M. Metzger, et al. v. Luminent Mortgage Capital, Inc., et al.
Type: Complaint		Date on the document: 09/11/2007
Class Action Amended Complaint
Case Name and/or Number: Joseph Leone, et al. v. Luminent Mortgage Capital, Inc., et al.
Type: Complaint		Date on the document: 10/8/2007

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