According to a press release dated January 31, 2008, the complaint charges that MMA and certain of its present and former officers, directors, and control persons violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by issuing materially false and misleading statements pertaining to MMA's business prospects, financial condition, and financial performance.
The lawsuit charges that, during the Class Period, the Company and its officers and directors, caused to be issued numerous false and misleading statements concerning the adequacy of the Company's internal controls and the value and performance of its tax-exempt bond portfolio. The Complaint alleges that defendants failed to disclose and misrepresented the true financial condition and operations of the Company.
On January 28, 2008, the Company announced that it was slashing its dividend and would again delay the filing of its restated financials. Before the market opened the following day, the Company disclosed that the previously announced restatement would impact an even greater portion of the Company's business. As a result of these disclosures, the Company's stock opened for trading at $12.33 per share and closed at $9.19 per share, or 46% below the prior day's close.
A similar, purported class action complaint was also filed in the U.S. District Court for the District of Maryland with class period between May 3, 2004 to January 29, 2008.
On March 31, 2008, several motions to appoint lead plaintiffs, counsels and to consolidate cases were filed by different groups and individuals. By the Conditional Multidistrict Litigation Transfer Order, dated August 18, 2008, five class actions and five derivative suits were transferred to the United States District Court for the District of Maryland for coordinated or consolidated pretrial proceedings.
On August 27, 2008, Judge Marvin J. Garbis signed the Memorandum and Order consolidating all the Class Actions proceedings with the Derivative Suit proceedings. Further, the Court concludes that the lead plaintiffs shall be the members of the Yates Group together with Plaintiff William D. Felix from the Kremser Group. The Court concludes that the firms of Berger & Montague, P.C. and Brower Piven, A Professional Corporation, shall serve as co-lead counsel. Berger & Montague shall have principal responsibility for Class members asserting claims under the Securities Exchange Act of 1934 and Bower Piven shall have responsibility for Class members asserting claims under the Securities Act of 1933. The Court further concludes that Charles J. Piven, Esquire, shall serve as Class Action plaintiffs' liaison counsel.
On September 3, 2008, the judge consolidated the Derivative Actions and appointed lead plaintiff and lead counsel. On December 5, 2008, the lead plaintiffs in the Class Action suit filed a Consolidated and Amended Class Action Complaint. The lead plaintiffs in the Derivative Action filed their complaint on December 12, 2008. On March 12, 2009, the defendants filed three motions to dismiss the Consolidated and Amended Class Action Complaint. The motions are currently pending before the Court.
On June 26, 2012, the Court issued an Order granting the motion to dismiss of certain defendants, granting in part and denying in part the motion of certain defendants, and granting in part and denying in part the motion to dismiss of another defendant.
On November 14, 2012, the court entered a Judgment pursuant to Rule 54(b) in the Class Action Securities Claims Cases in favor of Defendants against Plaintiffs. Plaintiffs filed Notice of their appeal of this Judgment on November 30. An Amended Notice of Appeal was filed on December 4.