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HomeBanc Corporation Summary: On April 4, 2008, U.S. District Court for the Southern District of Florida Judge William P. Dimitrouleas granted the motion to transfer the case to the U.S. District Court for the Northern District of Georgia.
According to a law firm press release, on December 7, 2007 a class action lawsuit has been commenced in the United States District Court for the Southern District of Florida on behalf of purchasers of the common stock of HomeBanc Corp. ("HomeBanc" or the "Company") (PINKSHEETS: HMBNP) between March 7, 2006 and August 3, 2007, inclusive (the "Class Period"), including those investors who purchased the Company's 10% Series A Cumulative Redeemable Preferred Stock pursuant or traceable to HomeBanc's February 2, 2006 offering in which the Company sold 2 million shares of Series A Preferred Stock for $25.00 per share.
Specifically, the lawsuit claims that HomeBanc, founder and former Chief Executive Officer, and other executives and directors of the Company violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Sections 11, 12(a) and 15 of the Securities Act of 1933. Specifically, the lawsuit alleges that prior to the Offering and during the Class Period, Defendants issued false and misleading statements touting the Company's positive financial results and future business prospects, and withheld from investors material adverse information indicating that the internal business environment, structure and policies at HomeBanc were in a severe state of deterioration.
In addition, the lawsuit claims Defendants manipulated the Company's financial results prior to the Offering in an effort to increase demand for the Company's Series A Preferred Stock and entice investors to purchase the Company's common stock.
In marked contrast to the Company's positive statements prior to the Offering, HomeBanc issued a press release on November 6, 2006 announcing substantial losses for the three and nine months ended September 30, 2006 -- the second quarter following the Offering. Over the course of the next thirteen months, HomeBanc would release increasingly adverse financial results, culminating in the August 3, 2007 suspension of the listing of the Company's common stock and Series A Preferred Stock on the NYSE.
Finally, on August 7, 2007, HomeBanc announced that it was unable to satisfy its mortgage loan funding obligations, and on August 9, 2007, HomeBanc filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code. Less than a year-and-a-half after the Company's Offering in which it obtained $50 million from unknowing investors, HomeBanc was bankrupt and the Company's shares were worthless.
A similar, purported class action complaint has also been filed in the U.S. District Court for the Northern District of Georgia.
INDUSTRY CLASSIFICATION:
SIC Code: 6798
Sector: Financial
Industry: Consumer Financial Services
| COMPANY/ISSUER NAME: | HomeBanc Corporation |
| COMPANY/ISSUER TICKER: | HMBN |
| COMPANY WEBSITE: | http://www.homebanc.com |
| FIRST IDENTIFIED COMPLAINT IN THE DATABASE | |||||||||||||||||
| Eldon Kadel, et al. v. , HomeBanc Corporation, et al. | |||||||||||||||||
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| DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT | |||
| Class Action Complaint | |||
| Type: Complaint | Date on the document: 11/30/2007 | ||
| Order Granting Motion To Transfer; Transferring Case To Northern District Of Georgia; Closing Case | |||
| Type: Order | Date on the document: 4/4/2008 | ||
| U.S. District Court Docket | |||
| Type: Docket | Date on the document: 4/8/2008 | ||
| REFERENCE COMPLAINT | |||||||||||||||||
| Kadel, et al. v. Flood, et al. | |||||||||||||||||
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| DOCUMENTS FOR THE REFERENCE COMPLAINT | |||
| U.S. District Court Civil Docket | |||
| Type: Docket | Date on the document: 4/23/2008 | ||
| OTHER DOCUMENTS | |||
| Plaintiffs' Class Action Complaint | |||
| Case Name and/or Number: Leonard R. Clewley IRA, et al. v. , HomeBanc Corporation, et al. | |||
| Type: Complaint | Date on the document: 12/18/2007 | ||
| Class Action Complaint for Violations of the Federal Securities Laws - Jury Trial Demanded | |||
| Case Name and/or Number: Robert J. Harbour, et al. v. , HomeBanc Corporation, et al. | |||
| Type: Complaint | Date on the document: 01/04/2008 | ||
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