Case Page

 

Case Status:    DISMISSED    
On or around 10/12/2004 (Other)

Filing Date: July 29, 2003

According to the Company’s FORM 10-Q for the quarterly period ended September 30, 2004, on June 21, 2004 Avatar moved for an order dismissing the action in its entirety, on the grounds of failure to state a claim, failure to plead with the requisite particularity and lack of standing. Plaintiff did not file a response to Avatar’s motion to dismiss. On October 12, 2004, the court entered an order dismissing the complaint in its entirety with prejudice as to the named plaintiff.

The Complaint alleges that defendants violated Sections 12(a)(2) and 15 of the Securities Act of 1933. Specifically, the case is brought in connection with Avatar's July 1, 2003 announcement of its redemption of $60 million of the $94,429 million in aggregate principal amount of Notes outstanding. The Notes were convertible, at any time prior to maturity, to shares of Avatar common stock at a conversion price of $31.80 per share or Avatar could redeem the Notes at its option at specified prices. Because Avatar is a real estate company, the true value of its real estate holdings is critical to Noteholders in making a decision whether to have their Notes redeemed for cash, or whether to exchange those Notes for shares of Avatar's common stock. The Company's public documents state that its real estate is valued at the lower of cost or market value. Plaintiff alleges that Noteholders are unable to make an informed decision whether to convert their Notes to Avatar common stock or allow them to be redeemed because defendants failed to disclose the basis on which the Company's land inventories are valued. The Complaint seeks disclosure of this material information or damages that flow from the failure to disclose it.

NOTE: The class includes all persons or entities who hold 7% convertible subordinated notes due April 1, 2005 sold by Avatar Holdings Inc.

COMPANY INFORMATION:

Sector: Services
Industry: Real Estate Operations
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol:
Company Market: Privately Traded
Market Status: Privately Held

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: D. Delaware
DOCKET #: 03-CV-738
JUDGE: Hon. Sue L. Robinson
DATE FILED: 07/29/2003
CLASS PERIOD START: 07/01/2003
CLASS PERIOD END: 07/29/2003
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Abbey Gardy, LLP (New York)
    212 East 39th Street, Abbey Gardy, LLP (New York), NY 10016
    212.889.3700 · info@abbeygardy.com
  2. Rosenthal, Monhait, Gross & Goddess, P.A.
    Suite 1401, Mellon Bank Center, PO Box 1070, Rosenthal, Monhait, Gross & Goddess, P.A., DE 19899-0170
    302.656.4433 (302) 658-7567 ·
No Document Title Filing Date