Case Page

 

Case Status:    DISMISSED    
On or around 01/31/2011 (Court's order of dismissal)

Filing Date: September 18, 2007

The original complaint charges Care Investment and certain of its officers and directors with violations of the Securities Act. Care Investment is a real estate investment and finance company formed principally to invest in healthcare-related commercial mortgage debt and real estate.

Specifically, the complaint alleges that on or about June 22, 2007, the Prospectus with respect to the IPO, which forms part of the Registration Statement, became effective and more than 15 million shares of Care Investment’s common stock were sold to the public at $15.00 per share, thereby raising more than $225 million. The complaint alleges that the Prospectus contained inaccurate statements of material fact because they failed to disclose that certain of the assets in the portfolio of healthcare-related mortgage assets, which was created upon the consummation of the IPO were materially impaired and therefore overvalued and that the Company was experiencing increasing difficulty in securing its warehouse financing lines.

According to the Company’s FORM 10-Q for the quarterly period ended March 31, 2008, on January 18, 2008, the court entered an order appointing co-lead plaintiffs and co-lead counsel. On February 19, 2008, the co-lead plaintiffs filed an amended complaint citing addition evidentiary support for the allegations in the complaint. Care believes the complaint and allegations are without merit and intends to defend against the complaint and allegations vigorously. The Company filed a motion to dismiss the complaint on April 22, 2008.

On March 4, 2009, Judge Stanton signed the Opinion and Order #97161 denying the defendants’ motion to dismiss the Amended Class Action Complaint. On July 9, 2010, the defendants filed a motion for summary judgment on whether Care’s registration statement and prospectus contained materially false or misleading statements, in violation of sections 11, 12(a)(2), and 15 of the Securities Act of 1933, 15 U.S.C. §§ 77k, 77l (a)(2), 77o, regarding Care’s expectation of securing warehouse financing. The lead plaintiffs filed opposition to the motion for summary judgment. On December 19, 2010, the motion for summary judgment was granted.

COMPANY INFORMATION:

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

SECURITIES INFORMATION:

Ticker Symbol: CRE
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: S.D. New York
DOCKET #: 07-CV-08159
JUDGE: Hon. Louis L. Stanton
DATE FILED: 09/18/2007
CLASS PERIOD START: 06/22/2007
CLASS PERIOD END: 09/18/2007
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Abraham, Fruchter & Twersky (New York, One Pennsylvania Plaza)
    One Pennsylvania Plaza, Suite 1910, Abraham, Fruchter & Twersky (New York, One Pennsylvania Plaza), NY 10119
    212.279.5050 212.279.3655 · JFruchter@FruchterTwersky.com
  2. Coughlin Stoia Geller Rudman & Robbins LLP (Melville)
    58 South Service Road, Suite 200, Coughlin Stoia Geller Rudman & Robbins LLP (Melville), NY 11747
    631.367.7100 631.367.1173 · info@csgrr.com/
No Document Title Filing Date
COURT: S.D. New York
DOCKET #: 07-CV-08159
JUDGE: Hon. Louis L. Stanton
DATE FILED: 02/19/2008
CLASS PERIOD START: 06/22/2007
CLASS PERIOD END: 09/18/2007
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Coughlin Stoia Geller Rudman & Robbins LLP (Melville)
    58 South Service Road, Suite 200, Coughlin Stoia Geller Rudman & Robbins LLP (Melville), NY 11747
    631.367.7100 631.367.1173 · info@csgrr.com/
  2. Labaton Sucharow LLP
    140 Broadway, Labaton Sucharow LLP, NY 10005
    212.907.0700 212.818.0477 · info@labaton.com
No Document Title Filing Date