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Case Status:    SETTLED
On or around 04/29/2009 (Date of order of final judgment)

Filing Date: August 08, 2007

Luminent Mortgage Capital, Inc. ("Luminent" or the Company) is a real estate investment trust, or REIT.

The original Complaint charges Defendants with violations of federal securities laws by, among other things, issuing a series of materially false and misleading press releases and SEC filings regarding Luminent's financial results and business prospects. Specifically, the Complaint alleges that Luminent failed to disclose: (i) the Company was not sufficiently liquid; (ii) the Company's financial statements and reports were not prepared in accordance with GAAP and SEC rules; and (iii) that Defendants lacked any reasonable basis to claim that the Company had ample liquidity and that the dividend payments were secure. As a result, the price of the Company's common stock was artificially inflated throughout the Class Period. On August 6, 2007, however, Defendants shocked the market when they announced that the Company was canceling the payment of its dividend. In response to the announcement, Luminent's share price dropped to a low of $3.75 on August 6, 2007 before trading was halted. It then opened on August 7, 2007 at $0.50, representing a drop of over 85%.

The Court consolidated several class actions, and on November 21, 2007, Judge Phyllis J. Hamilton appointed lead Plaintiff and lead Counsel. On February 15, 2008, the lead Plaintiffs filed a Consolidated Class Action Complaint. On March 31, 2008, the Defendants responded by filing a motion to dismiss the Consolidated Complaint. On September 10, 2008, Defendant Luminent filed a notice of Voluntary Petition and Imposition of Automatic Stay due to bankruptcy proceedings. On December 10, 2008, the Plaintiff filed a proposed order for preliminary approval of settlement and providing for notice.

On January 20, 2009, the District Court Judge Phyllis J. Hamilton signed the Order preliminarily approving the settlement and providing for notice. A hearing was to be held before this Court on April 29, 2009 to determine whether the proposed Settlement of the Action on the terms and conditions provided for in the Stipulation is fair, reasonable and adequate to the Settlement Class and should be approved by the Court. The proposed settlement is in the amount of $8,000,000 in cash.

On April 29, 2009, Judge Hamilton granted the motion for attorney fees and expenses and awarded Plaintiff’s Counsel 25% of the settlement fund and reimbursement of $105,302.15 in expenses. That day, the Court approved the settlement and dismissed the action with prejudice.

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