Impac Mortgage Holdings, Inc. ("Impac" or the Company) is an American company that provides residential mortgage lending, real estate services, and mortgage portfolio management.
The original Complaint charges Impac and its top executive officers with violating the federal securities laws by issuing a series of materially false and misleading press releases and filings with the SEC concerning Impac's financial results and business prospects.
Specifically, the Complaint alleges that Impac's representations concerning its Alt-A loans are alleged to be patently untrue, with the Alt-A loans actually being sold to less creditworthy borrowers, so that the loan portfolio was experiencing the same risks and discounts in securitization as sub-prime mortgages. At the same time, Impac overstated its financial results by failing to write down the value of its loan portfolio, thus falsely inflating the prices investors paid for Impac securities.
The judge ordered related cases to be consolidated on November 9, 2007, at the same time appointing lead Plaintiff and approving selection of lead Counsel. The Consolidated Amended Complaint was filed January 8, 2008, which Defendants moved to have dismissed. Before ruling on the motion, Plaintiffs amended their Complaint and filed a Second Amended Consolidated Complaint on June 20, 2008. The Defendants filed a motion to dismiss on July 18, 2008. The judge dismissed the Second Amended Consolidated Complaint on October 6, 2008 but provided Plaintiffs 21 days to amend and re-file. A Third Amended Consolidated Complaint was filed on October 27, 2008.
On December 15, 2008, the Defendants filed a motion to dismiss the Third Amended Consolidated Class Action Complaint. On March 9, 2009, Judge Andrew J. Guilford granted the Defendants’ motion to dismiss. On March 25, 2009, Judgment was entered. On April 7, 2009, the lead Plaintiff filed a Notice of Appeal to the Ninth Circuit Court of Appeals.
On July 22, 2010, the Court entered the Mandate from the Ninth Circuit Court of Appeals, which affirmed the decision of the District Court.
