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Case Status:    SETTLED
On or around 09/16/2009 (Date of order of final judgment)

Filing Date: March 29, 2007

The original complaint charges Beazer and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Beazer designs, sells and builds primarily single-family homes in various locations within the United States and provides mortgage origination and title insurance services to its homebuyers.

Specifically, the complaint alleges that during the Class Period defendants issued false and misleading statements regarding the Company's business and prospects and failed to disclose to the investing public the following adverse facts: (a) the Company lacked requisite internal controls over its lending practices, which, as a result of its improper lending practices prior to and during the Class Period, would lead to numerous foreclosures and other problems; (b) the Company's business was growing in large part due to its improper lending practices to low-income borrowers; (c) many of the Company's buyers would not be able to pay their loans after the first two years, which would lead to decreased sales and earnings and numerous foreclosures; and (d) given the increased volatility in the lending market, the Company had no reasonable basis to make projections about its 2007 results and as a result, the Company's 2007 projections issued during the Class Period were at a minimum reckless. As a result of defendants' false statements, Beazer stock traded at artificially inflated prices during the Class Period, reaching a high of $48 per share in December 2006, and the Company's CEO and CFO were able to sell over $9.7 million worth of their Beazer stock.

The complaint further alleges that on March 18, 2007, The Charlotte Observer reported that federal housing officials were reviewing whether Beazer complied with federal rules in arranging government-insured loans for buyers in its subdivisions. On March 21, 2007, Beazer announced the resignation of its CFO. Then, on March 27, 2007, after the market closed, the Company issued a press release responding to media reports and inquiries into the possibility of a federal investigation of the Company in connection with alleged mortgage fraud. On this news, Beazer's stock fell $2.64 per share to close at $28.77 per share on March 28, 2007, a one-day decline of 9% and a 40% decline from its Class Period high of $48 per share.

On August 8, 2007, the Court entered the Order signed by Judge Clarence Cooper granting the motion for consolidation, appointment as lead plaintiff and approval of lead plaintiff's selection of co-lead counsel. According to the Order, several actions were consolidated under "In re Beazer Homes USA, Inc. Securities Litigation,” File No. 1 :07-CV-725-CC. Further, Glickenhaus & Co. is appointed lead plaintiff and Chitwood Harley Harnes, LLP, Milberg Weiss LLP, and Bernstein Liebhard & Lifshitz, LLP is appointed co-lead counsel.

On June 27, 2008, the plaintiffs filed an Amended and Consolidated Class Action Complaint. On November 3, 2008, the defendants filed several motions to dismiss the Amended and Consolidated Complaint. Before any ruling on the motions, the lead plaintiffs filed a motion for settlement on May 5, 2009. According the Stipulation of Settlement, the proposed settlement is in the amount of $30,500,000 and settles claims with the Beazer Homes USA, Inc., the individual defendants and Deloitte & Touche LLP.

On May 12, 2009, Judge Cooper preliminarily approved the settlement. On July 15, 2009, the plaintiffs filed a motion for final approval of settlement and motion for attorney's fees and expenses. On September 15, 2009, Judge Cooper signed the Order and Final Judgment approving the settlement and approving the motion for attorney's fees and expenses.


Sector: Capital Goods
Industry: Construction Services
Headquarters: United States


Ticker Symbol: BZH
Company Market: New York SE
Market Status: Public (Listed)

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: N.D. Georgia
DOCKET #: 07-CV-00725
JUDGE: Hon. Clarence Cooper
DATE FILED: 03/29/2007
CLASS PERIOD END: 03/27/2007
  1. Holzer & Holzer, LLC
    1117 Perimeter Center West, Suite E-107, Holzer & Holzer, LLC, GA 30338
    770.392.0090 770.392-0029 ·
  2. Lerach Coughlin Stoia Geller Rudman & Robbins LLP (Boca Raton)
    197 South Federal Highway, Suite 200, Lerach Coughlin Stoia Geller Rudman & Robbins LLP (Boca Raton), FL 33432
    561.750.3000 56.750.3364 ·
  3. Lerach Coughlin Stoia Geller Rudman & Robbins LLP (San Diego)
    655 West Broadway, Suite 1900, Lerach Coughlin Stoia Geller Rudman & Robbins LLP (San Diego), CA 92101
    619.231.1058 619.231.7423 ·
  4. Motley Rice LLC (Atlanta)
    One Georgia Center; 600 West Peachtree Street, Suite 800, Motley Rice LLC (Atlanta), GA 30308
    1-800-768-4026 ·
No Document Title Filing Date
COURT: N.D. Georgia
DOCKET #: 07-CV-00725
JUDGE: Hon. Clarence Cooper
DATE FILED: 06/27/2008
CLASS PERIOD END: 05/12/2008
  1. Bernstein Liebhard & Lifshitz, LLP (New York)
    10 E. 40th Street, 22nd Floor, Bernstein Liebhard & Lifshitz, LLP (New York), NY 10016
    800.217.1522 ·
  2. Chitwood Harley Harnes LLP (Atlanta)
    1230 Peachtree Street, N.E., 2300 Promenade II, Chitwood Harley Harnes LLP (Atlanta), GA 30309
    888.873.3999 404.873.4476 ·
  3. Milberg LLP (New York)
    One Pennsylvania Plaza, 49th Floor, Milberg LLP (New York), NY 10119
    1.877.692.1965 ·
No Document Title Filing Date