IndyMac Bancorp Inc. - Securities Class Action

Company and Case Information

IMPORTANT INFORMATION | INDEX OF FILINGS | SEARCH

Home

Index of Filings

News and Press Releases

Filings

Litigation Activity Indices

Annual/Quarterly Updates

Clearinghouse Research

Articles & Papers

Search

Related Sites

About Us

Local Rules

Sponsors

Register

_______________
Copyright (c) 2001
Stanford Law School

IndyMac Bancorp Inc. Summary: The original complaint was filed against IndyMac and certain of its officers and/or directors for violations of the Securities Exchange Act of 1934. IndyMac Bancorp, Inc. operates as the holding company for IndyMac Bank, F.S.B., a thrift/mortgage bank, which provides mortgage products and services, including adjustable-rate mortgages, fixed-rate mortgages, construction-to-permanent loans, subprime mortgages, and reverse mortgages.

Specifically, the complaint alleges that during the Class Period, defendants issued materially false and misleading statements concerning the Company's business and financial results. As a result of defendants' failure to fully disclose problems with the Company's internal controls and loan loss provisions, IndyMac stock traded at artificially inflated prices during the Class Period, reaching a high of $50.11 per share in May 2006.

Throughout the Class Period, defendants issued public statements which touted the Company's business and financial performance, but which failed to fully disclose problems with the Company's internal controls and underwriting practices and that the Company maintained inadequate provisions for loan losses. These partial disclosures only hinted at the Company's problems, and had the effect of maintaining IndyMac's stock price at inflated levels during the Class Period. At the end of the Class Period, as the news of the Company's problems seeped into the market, IndyMac's share price dropped following each revelation.

The complaint further alleges that on March 1, 2007, IndyMac issued a press release in which a "Letter to Shareholders" acknowledged, among other thing, problems with the Company's underwriting practices and loan delinquencies.

That same day, March 1, 2007, as a result of this news, IndyMac's stock dropped from $34.33 to a close of $32.16 per share, on volume of more than 9.6 million shares, four times the average three-month volume.

On June 19, 2007, the Court entered the minutes of the motion hearing held before Judge George H. Wu. At the hearing, the Court granted the motion of the Tripp Group to be appointed Lead Plaintiff and for approval of the Lead and Liaison Counsels. The Court further granted leave for further submission as to complexity of case as to whether or not there should be co-lead counsel. On September 7, 2007, the plaintiffs filed an Amended Complaint and the defendants responded by filing a motion to dismiss the Amended Complaint. On November 29, 2007, Judge George Wu granted the defendants’ motion to dismiss the securities class action lawsuit that had been filed against Indymac and three individual defendants. The dismissal is without prejudice, and the plaintiffs have until January 18, 2008 to file an amended complaint.

The lead plaintiffs filed a Second Amended Class Action Complaint on January 18, 2008. The plaintiffs voluntarily dismissed one of the individual defendants. Defendants again moved for dismissal on February 19, 2008. On May 5 the judge again granted the motion to dismiss without prejudice and provided plaintiffs with the opportunity to re-file the complaint addressing various pleading deficiencies.

The lead plaintiffs filed a Third Amended Class Action Complaint on June 6, 2008. The defendants responded by filing a motion to dismiss on July 1, 2008. IndyMac filed for bankruptcy under Chapter 7 on August 2, 2008. IndyMac's CEO filed a motion to stay proceedings against him as a result of IndyMac's pending bankruptcy proceedings. His motion was denied on October 16, 2008. On April 20, 2009, Judge George H. Wu granted the defendants’ motion to dismiss as to the hedging issue. On May 11, 2009, Judge Wu granted the defendants’ motion to dismiss with leave to amend.

On June 1, 2009, the lead plaintiffs filed a Fourth Amended Class Action Complaint. The defendants filed a motion to dismiss the Amended Class Action Complaint. On September 24, 2009, Defendant Michael W. Perry's Motion to Dismiss Plaintiffs' Fourth Amended Class Action Complaint is granted with leave to amend. On October 5, 2009, the lead plaintiffs filed a Fifth Amended Class Action Complaint. On October 26, 2009, the defendant filed a motion to dismiss the complaint. On December 11, 2009, Judge George H. Wu denied the defendant’s motion.

On February 16, 2010, the plaintiffs filed a Sixth Amended Class Action Complaint. According to the Order signed by Judge George H. Wu on March 29, 2010, the Court now converts defendant Michael W. Perry’s motion to dismiss the Fifth Amended Class Action Complaint into a motion to dismiss the Sixth Amended Class Action Complaint, formally denies the motion to dismiss the Sixth Amended Class Action Complaint, and simultaneously incorporates into this ruling the first two paragraphs from the tentative ruling issued December 10, 2009, and made final December 11, 2009, which addressed the prior iteration of Plaintiffs’ complaint. Finally, for the reasons addressed in the tentative ruling issued February 1, 2010 (Docket No. 224) and adopted as this Court’s final ruling on March 22, 2010 (Docket No. 242), this ruling on the motion to dismiss the Sixth Amended Class Action Complaint is now certified for interlocutory appeal pursuant to 28 U.S.C. § 1292(b). The Court finds that the loss causation portion of this Order denying the motion to dismiss the Sixth Amended Class Action Complaint involves controlling questions of law as to which there are substantial grounds for differences of opinion and that an immediate appeal from this Order may materially affect the ultimate termination of the litigation.

On July 27, 2010, Judge George H. Wu granted the motion for partial stay of the action pending mediation.

On August 26, 2011, the lead plaintiff filed a motion to certify the class.

On February 16, 2012, an Order was issued staying this case due to mediation.

INDUSTRY CLASSIFICATION:
SIC Code: 6035
Sector: Financial
Industry: S&Ls/Savings Banks

COMPANY/ISSUER NAME:	IndyMac Bancorp Inc.
COMPANY/ISSUER TICKER:	IMB
COMPANY WEBSITE:	http://www.indymacbank.com

FIRST IDENTIFIED COMPLAINT IN THE DATABASE

Claude A. Reese, et al. v. IndyMac Bancorp Inc., et al.

COURT: C.D. California	DOCKET NUMBER: 07-CV-01635
JUDGE NAME: Hon. George H. Wu
DATE FILED: 03/12/2007	SOURCE: Notice of Filing
CLASS PERIOD START: 05/04/2006	CLASS PERIOD END: 03/01/2007
TYPE OF COMPLAINT: Complaint (Unamended and Unconsolidated)
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Brodsky & Smith, LLC (former Pennysylvania) 11 Bala Avenue, Suite 39, Bala Cynwyd, PA, 19004 (voice) 610.668.7987, (fax) 610.660.0450, esmith@Brodsky-Smith.com Cohen, Milstein, Hausfeld & Toll, P.L.L.C. (Washington, DC) 1100 New York Avenue, N.W., Suite 500, West Tower, Washington, DC, 20005 (voice) 202.408.4600, (fax) 202.408.4699, lawinfo@cmht.com Glancy Binkow & Goldberg LLP (Los Angeles) 1801 Ave. of the Stars, Suite 311, Los Angeles, CA, 90067 (voice) 310.201.915, (fax) 310. 201-916, info@glancylaw.com Law Offices Of William F. Salle 425 E. Colorado St., Suite 755, Glendale, CA, 91205 (voice) 818.543.1900, (fax) 818.543.1550, wfslaw@yahoo.com Schiffrin Barroway Topaz & Kessler, LLP (Radnor) 280 King of Prussia Road, Radnor, PA, 19087 (voice) 610.667.7706, (fax) 610.667.7056, info@sbtklaw.com _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 5

DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT
Breach Of Fiduciary Duty And Class Action Complaint For Violations Of Federal Securities Laws - Jury Trial Demanded
Type: Complaint		Date on the document: 03/12/2007

REFERENCE COMPLAINT

Wayman Tripp, et al. v. IndyMac Bancorp., Inc., et al.

COURT: C.D. California	DOCKET NUMBER: 07-CV-01635
JUDGE NAME:
DATE FILED: 02/16/2010	SOURCE: Docket
CLASS PERIOD START: 03/01/2006	CLASS PERIOD END: 03/01/2007
TYPE OF COMPLAINT: Consolidated Complaint
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Schiffrin Barroway Topaz & Kessler, LLP (Radnor) 280 King of Prussia Road, Radnor, PA, 19087 (voice) 610.667.7706, (fax) 610.667.7056, info@sbtklaw.com _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 1

DOCUMENTS FOR THE REFERENCE COMPLAINT
Class Action Amended Complaint For Violations Of Sections 10(b) And 20(a) Of The Securities Exchange Act Of 1934
Type: Complaint		Date on the document: 09/07/2007
Civil Minutes
Type: Other		Date on the document: 10/29/2007
Second Amended Class Action Complaint For Violations Of Section 10(b) And 20(a) Of The Securities Exchange Act Of 1934
Type: Complaint		Date on the document: 01/18/2008
Civil Minutes - General
Type: Order		Date on the document: 05/08/2008
Third Amended Class Action Complaint For Violations Of Sections 10(b) And 20(a) Of The Securities Exchange Act Of 1934
Type: Complaint		Date on the document: 06/06/2008
Defendant Michael W. Perry's Motion To Stay Proceedings
Type: Notice		Date on the document: 09/22/2008
Civil Minutes - General
Type: Order		Date on the document: 10/16/2008
Civil Minutes
Type: Other		Date on the document: 04/20/2009
Civil Minutes
Type: Other		Date on the document: 05/11/2009
Fourth Amended Class Action Complaint for Violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934
Type: Complaint		Date on the document: 06/01/2009
Fifth Amended Class Action Complaint For Violations Of Sections 10(b) And 20(a) Of The Securities Exchange Act Of 1934
Type: Complaint		Date on the document: 10/05/2009
Sixth Amended Class Action Complaint For Violations Of Sections 10(b) And 20(a) Of The Securities Exchange Act Of 1934
Type: Complaint		Date on the document: 02/16/2010
Order Denying Motion To Dismiss Sixth Amended Class Action Complaint, Incorporating Loss Causation Analysis From Ruling On Order Denying Motion To Dismiss Fifth Amended Class Action Complaint, And Certifying Order For Interlocutory Appeal
Type: Order		Date on the document: 03/29/2010
U.S. District Court Civil Docket
Type: Docket		Date on the document: 08/29/2011

OTHER DOCUMENTS

Case Name and/or Number:
Type:		Date on the document:

WARNING AND DISCLAIMER OF LIABILITY:
The information included on this Web site, whether provided by personnel employed by Stanford Law School or by third parties, is provided for research and teaching purposes only. Neither Stanford University, Stanford Law School, nor any of their employees, agents, contractors, or affiliates warrant the accuracy or completeness of the information or analyses displayed herein, and we caution all readers that inclusion of any information on this site does not constitute an endorsement of the truthfulness or accuracy of that information. In particular, this Web site contains complaints and other documents filed in federal and state courts, which make allegations that may or may not be accurate. No reader should, on the basis of information contained in or referenced by this Web site, assume that any of these allegations are truthful.

Go to Search page | Go to Case Index page | Back to Top

�