Hovnanian Enterprises, Inc. - Securities Class Action

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Stanford Law School

Hovnanian Enterprises, Inc. Summary: The original complaint charges the Company’s Executive Vice President and Chief Financial Officer with violations of the Securities Exchange Act of 1934. Hovnanian engages in building residential homes in the United States. It designs, constructs, markets, and sells single-family detached homes, attached townhomes and condominiums, mid-rise and high-rise condominiums, urban infill, and adult homes.

Specifically, the alleges that during the Class Period, the defendant issued materially false and misleading statements regarding the Company's business and prospects. As a result of these misleading statements, Hovnanian stock traded at artificially inflated prices during the Class Period, reaching a high of $54.29 per share in January 2006.

As a result of defendant's misleading statements and failure to disclose, Hovnanian stock traded at inflated levels during the Class Period. However, as a direct result of the market learning of defendant's wrongdoing,the price of Hovnanian shares declined and plaintiff and the class suffered a loss on their investment in Hovnanian.

On January 31, 2008, Judge Otis D. Wright II granted the motion to appoint Herbert Mankofsky as lead plantiff and approved lead plaintiff’s selection of Glancy Binkow & Goldberg LLP as lead counsel. On February 25, 2008, the case was transferred from the U.S. District Court for the Central District of California to the U.S. District Court for the District of New Jersey. The lead plaintiff filed an Amended Complaint on March 10, 2008, against Hovnanian's CFO and added the company, CEO and COO as named defendants in the action. The defendants filed motions to dismiss in July 2008. On March 31, 2009, the Court entered the Stipulation and Order withdrawing the motions to dismiss. On June 12, 2009, the lead plaintiff filed a Second Amended Complaint.

On September 11, 2009, a Motion for Settlement Preliminary Approval of Class Action Settlements was filed. The proposed settlement is in the amount of $4,000,000 in cash. On October 16, 2009, the Court preliminary approved the settlement. The Settlement Conference was held on December 15, 2009. At the hearing, Judge Susan D. Wigenton approved the settlement, approved the plan of allocation, approved attorneys' fees and expenses and dismissed the action with prejudice. The civil case is now terminated.

INDUSTRY CLASSIFICATION:
SIC Code: 1531
Sector: Capital Goods
Industry: Construction Services

COMPANY/ISSUER NAME:	Hovnanian Enterprises, Inc.
COMPANY/ISSUER TICKER:	HOV
COMPANY WEBSITE:	http://www.khov.com

FIRST IDENTIFIED COMPLAINT IN THE DATABASE

Herbert Mankovsky, et al. v. J. Larry Sorsby, et al.

COURT: C.D. California	DOCKET NUMBER: 07-CV-05994
JUDGE NAME: Hon. Margaret M. Morrow
DATE FILED: 09/14/2007	SOURCE: Notice of Filing
CLASS PERIOD START: 12/08/2005	CLASS PERIOD END: 08/13/2007
TYPE OF COMPLAINT: Complaint (Unamended and Unconsolidated)
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Lee Hong Degerman Kang & Schmadeka 660 S. Figueroa St., Los Angeles, CA, 90017 (voice) 213.623.2221, (fax) 213.623.2211, _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 1

DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT
Complaint for Breach of Fiduciary Duty
Type: Complaint		Date on the document: 09/14/2007
U.S. District Court Civil Docket
Type: Docket		Date on the document: 03/14/2008

REFERENCE COMPLAINT

In Re: Hovnanian Enterprises, Inc. Securities Litigation

COURT: D. New Jersey	DOCKET NUMBER: 08-CV-00999
JUDGE NAME: Hon. Susan D. Wigenton
DATE FILED: 06/12/2009	SOURCE: Docket
CLASS PERIOD START: 06/30/2005	CLASS PERIOD END: 12/19/2007
TYPE OF COMPLAINT: Second Amended
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Glancy Binkow & Goldberg LLP (NY) 1501 Broadway, Suite 1416, New York, NY, 10036 (voice) (917) 510-000, (fax) (646) 366-089, info@glancylaw.com _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 1

DOCUMENTS FOR THE REFERENCE COMPLAINT
Amended Complaint for Violation of the Securities Exchange Act of 1934
Type: Complaint		Date on the document: 03/10/2008
Stipulation and Order Withdrawing Motion to Dismiss and Setting Briefing Schedule
Type: Order		Date on the document: 03/31/2009
Second Amended Complaint for Violation of the Securities Exchange Act of 1934
Type: Complaint		Date on the document: 06/12/2009
Lead Plaintiff's Notice of Unopposed Motion for Preliminary Approval of Class Action Settlements
Type: Motion		Date on the document: 09/11/2009
Order Preliminarily Approving Settlement And Providing For Notice
Type: Order		Date on the document: 10/16/2009
Final Judgment And Order Of Dismissal With Prejudice
Type: Order		Date on the document: 12/16/2009
U.S. District Court Civil Docket
Type: Docket		Date on the document: 12/28/2009

OTHER DOCUMENTS

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

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