IndyMac Bancorp, Inc. : Option ARM - Securities Class Action

Company and Case Information

IMPORTANT INFORMATION | INDEX OF FILINGS | SEARCH

Home

Index of Filings

News and Press Releases

Filings

Decisions

Settlements

Litigation Activity Indices

Top Ten List

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. : Option ARM Summary: The original complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company's business and financial results. Specifically, defendants downplayed and concealed IndyMac's growing exposure to non-performing assets, particularly loans in its pay-option adjustable-rate mortgage ("Option ARM") and homebuilder construction portfolios, and made numerous positive representations regarding the Company's capital position to alleviate investors' fears concerning the Company's capital erosion. As a result of defendants' false statements, IndyMac stock traded at artificially inflated prices during the Class Period, reaching a Class Period high of $24.55 per share in October 2007.

Then on May 12, 2008, IndyMac announced its first quarter 2008 financial results, including a net loss of $184.2 million, or ($2.27) per share, compared with net earnings of $52.4 million, or $0.70 per share, in the first quarter of 2007. On this news, IndyMac's stock dropped to close at $2.32 per share - a two-day decline of $1.11 per share, or 32%, and a decline of 91% from $24.55 per share on October 2, 2007.

According to the complaint, the true facts, which were known by the defendants but concealed from the investing public during the Class Period, were as follows: (a) the Company was not adequately reserving for its losses on mortgage-related assets in violation of generally accepted accounting principles; (b) the Company had far greater exposure to anticipated losses and defaults concerning its book of business related to its homebuilder and Option ARM portfolios than it had previously disclosed; (c) the Company's capital base was not adequate enough to withstand the significant deterioration in the credit and real estate markets and could jeopardize the Company's status as "well capitalized;" (d) IndyMac had not adequately reserved for Option ARMs; and (e) given the Company's exposure to the increased volatility in the credit and real estate markets, the Company had no reasonable basis to make projections about its earnings.

The court granted consolidation of related cases, selected a lead plaintiff and granted his selection of lead counsel on September 12, 2008. The Consolidated Amended Class Action Complaint was filed on January 27, 2009. On March 20, 2009, the lead plaintiff filed a Second Amended Consolidated Class Action Complaint. On April 24, 2009, the defendants filed three motions to dismiss the Second Amended Consolidated Class Action Complaint. On August 31, 2009, the hearing was held before Judge George H. Wu. The motions are tentatively granted with leave to amend.

On October 9, 2009, the lead plaintiff filed a Third Amended Consolidated Class Action Complaint. The defendants responded by filing several motions to dismiss the Third Amended Consolidated Complaint in November 2009. On August 9, 2010, the motions were granted with leave to amend. On September 9, 2010, the plaintiff filed a Fourth Amended Consolidated Class Action Complaint and then a Fifth Amended Consolidated Class Action Complaint on May 27, 2011.

By the Order entered on October 3, 2011, defendants shall file their motions to dismiss and memoranda of points and authorities in support thereof on or before Friday, February 24, 2012; 2. Plaintiff shall file his opposition briefs on or before Monday, April 2, 2012; and 3. Defendants shall file their reply briefs on or before Tuesday, April 24, 2012.

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

John Folsom, et al. v. IndyMac Bancorp, Inc., et al.

COURT: C.D. California	DOCKET NUMBER: 08-CV-03812
JUDGE NAME: Hon. Stephen V. Wilson
DATE FILED: 06/11/2008	SOURCE:
CLASS PERIOD START: 08/16/2007	CLASS PERIOD END: 05/12/2008
TYPE OF COMPLAINT: Complaint (Unamended and Unconsolidated)
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Coughlin Stoia Geller Rudman & Robbins LLP (Los Angeles) 355 S. Grand Avenue, Suite 4170, Los Angeles, CA, 90071 (voice) 213.617.9007, (fax) 213.617.9185, info@csgrr.com/ _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 1

DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT
Class Action Complaint for Violation of the Federal Securities Laws - Demand for Jury Trial
Type: Complaint		Date on the document: 06/11/2008
Court Order (Proceedings In Chambers)
Type: Order Appointing LP/LC		Date on the document: 09/12/2008

REFERENCE COMPLAINT

Robert C. Daniels, et al. v. IndyMac Bancorp, Inc., et al.

COURT: C.D. California	DOCKET NUMBER: 08-CV-03812
JUDGE NAME:
DATE FILED: 05/27/2011	SOURCE:
CLASS PERIOD START: 03/01/2007	CLASS PERIOD END: 05/12/2008
TYPE OF COMPLAINT: Fifth Amended and Consolidated
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Berger & Montague PC 1622 Locust Street, Philadelphia, PA, 19103 (voice) 800.424.6690, (fax) 215.875.4604, investorprotect@bm.net Susman, Godfrey LLP (Dallas) 4100 Bank of America, 901 Main Street, Dallas, TX, 75202 (voice) 214.754.1908, (fax) , mevans@susangodfrey.com _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 2

DOCUMENTS FOR THE REFERENCE COMPLAINT
Consolidated Amended Class Action Complaint For Violation Of Federal Securities Laws
Type: Complaint		Date on the document: 01/27/2009
Second Amended Consolidated Class Action Complaint For Violation Of Federal Securities Laws
Type: Complaint		Date on the document: 03/20/2009
Civil Minutes - General
Type: Other		Date on the document: 08/31/2009
Third Amended Consolidated Class Action Complaint For Violation of Federal Securities Laws
Type: Complaint		Date on the document: 10/09/2009
Fourth Amended Consolidated Class Action Complaint For Violations Of Federal Securities Laws
Type: Complaint		Date on the document: 09/09/2010
Fifth Amended Consolidated Class Action Complaint For Violation Of Federal Securities Laws
Type: Complaint		Date on the document: 05/27/2011
U.S. District Court Civil Docket
Type: Docket		Date on the document: 09/30/2011

OTHER DOCUMENTS
Complaint For Violation Of The Federal Securities Laws
Case Name and/or Number: Ariel Investments LTD, et al. v. IndyMac Bancorp, Inc., et al.
Type: Complaint		Date on the document: 06/30/2008

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

�