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Centerline Holding Company Summary: According to a press release dated January 18, 2008, the Complaint alleges that Defendants Centerline and certain of its officers and directors issued a series of materially false and misleading statements about Centerline's business model and financial condition, including statements concerning its portfolio of tax-exempt first mortgage bonds, which generated the majority of the Company's revenues and supported the Company's $1.68 per share annual dividend. Defendants' statements concealed from the investing public that Defendants were in the midst of structuring a sale of the Company's mortgage revenue bond portfolio to a third party. On December 28, 2007, Centerline shocked the financial markets with a press release announcing that the Company had sold its "$2.8 billion tax-exempt affordable housing bond portfolio" to a third party and, in the process, transformed the Company's business model to a pure asset management firm. As a result of this transaction, the Company disclosed that it would be slashing its annual dividend from $1.68 per share to only $0.60 per share. Even more shocking was the revelation that Defendants had entered into a related party transaction with a company owned by certain of the Defendants called The Related Companies, L.P. ("TRCLP"), whereby TRCLP agreed to provide Centerline $131 million in financing, in exchange for 12.2 million shares of newly-issued convertible preferred stock that will pay Company insiders an 11% dividend. In reaction to this news, the price of Centerline stock plummeted from $10.27 per share on December 27, 2007, to close at $7.70 per share on December 28, 2007, representing a 25% single-day decline, on unusually heavy trading volume of 4,152,688 shares.
INDUSTRY CLASSIFICATION:
SIC Code: 6500
Sector: Financial
Industry: Investment Services
| COMPANY/ISSUER NAME: | Centerline Holding Company |
| COMPANY/ISSUER TICKER: | CHC |
| COMPANY WEBSITE: | http://www.centerline.com |
| FIRST IDENTIFIED COMPLAINT IN THE DATABASE | |||||||||||||||||
| Mark K. Goldstein, et al. v. Centerline Holding Company, et al. | |||||||||||||||||
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| DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT | |||
| Class Action Complaint for Violations of the Federal Securities Laws - Jury Trial Demanded | |||
| Type: Complaint | Date on the document: 01/18/2008 | ||
| OTHER DOCUMENTS | |||
| Class Action Complaint - Jury Trial Demanded | |||
| Case Name and/or Number: Peter Frank, et al. v. Centerline Holding Company, et al. | |||
| Type: Complaint | Date on the document: 01/30/2008 | ||
| Class Action Complaint for Violations of Federal Securities Laws - Jury Trial Demanded | |||
| Case Name and/or Number: Lori Weinrib, et al. v. Centerline Holding Company, et al. | |||
| Type: Complaint | Date on the document: 02/04/2008 | ||
| Class Action Complaint for Violations of the Federal Securities Laws - Jury Trial Demanded | |||
| Case Name and/or Number: Thomas Lyons, et al. v. Centerline Holding Company, et al. | |||
| Type: Complaint | Date on the document: 02/11/2008 | ||
| Class Action Complaint for Violations of the Federal Securities Laws - Jury Trial Demanded | |||
| Case Name and/or Number: Deborah Dechter, et al. v. Centerline Holding Company, et al. | |||
| Type: Complaint | Date on the document: 02/15/2008 | ||
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