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Case Status:    SETTLED
On or around 12/16/2009 (Date of order of final judgment)

Filing Date: September 14, 2007

The original complaint charges the Company’s Executive Vice President and Chief Financial Officer with violations of the Securities Exchange Act of 1934. Hovnanian engages in building residential homes in the United States. It designs, constructs, markets, and sells single-family detached homes, attached townhomes and condominiums, mid-rise and high-rise condominiums, urban infill, and adult homes.

Specifically, the alleges that during the Class Period, the defendant issued materially false and misleading statements regarding the Company's business and prospects. As a result of these misleading statements, Hovnanian stock traded at artificially inflated prices during the Class Period, reaching a high of $54.29 per share in January 2006.

As a result of defendant's misleading statements and failure to disclose, Hovnanian stock traded at inflated levels during the Class Period. However, as a direct result of the market learning of defendant's wrongdoing,the price of Hovnanian shares declined and plaintiff and the class suffered a loss on their investment in Hovnanian.

On January 31, 2008, Judge Otis D. Wright II granted the motion to appoint Herbert Mankofsky as lead plantiff and approved lead plaintiff’s selection of Glancy Binkow &
Goldberg LLP as lead counsel. On February 25, 2008, the case was transferred from the U.S. District Court for the Central District of California to the U.S. District Court for the District of New Jersey. The lead plaintiff filed an Amended Complaint on March 10, 2008, against Hovnanian's CFO and added the company, CEO and COO as named defendants in the action. The defendants filed motions to dismiss in July 2008. On March 31, 2009, the Court entered the Stipulation and Order withdrawing the motions to dismiss. On June 12, 2009, the lead plaintiff filed a Second Amended Complaint.

On September 11, 2009, a Motion for Settlement Preliminary Approval of Class Action Settlements was filed. The proposed settlement is in the amount of $4,000,000 in cash. On October 16, 2009, the Court preliminary approved the settlement. The Settlement Conference was held on December 15, 2009. At the hearing, Judge Susan D. Wigenton approved the settlement, approved the plan of allocation, approved attorneys' fees and expenses and dismissed the action with prejudice. The civil case is now terminated.


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


Ticker Symbol: HOV
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: C.D. California
DOCKET #: 07-CV-05994
JUDGE: Hon. Margaret M. Morrow
DATE FILED: 09/14/2007
CLASS PERIOD END: 08/13/2007
  1. Lee Hong Degerman Kang & Schmadeka
No Document Title Filing Date
COURT: D. New Jersey
DOCKET #: 08-CV-00999
JUDGE: Hon. Margaret M. Morrow
DATE FILED: 06/12/2009
CLASS PERIOD END: 12/19/2007
  1. Glancy Binkow & Goldberg LLP (Los Angeles)
No Document Title Filing Date
—Related District Court Filings Data is not available