Case Page

 

Case Status:    DISMISSED    
On or around 03/04/2010 (Notice of voluntarily dismissal)

Filing Date: October 27, 2008

According to a press release dated October 28, 2008, the Complaint charges the Company's Board of Directors (the "Board") and additional defendants with violations of federal securities laws. The defendant operates as a residential mortgage lending company, which originates, acquires and retains investments in adjustable and variable rate mortgage (ARM) assets. The Complaint alleges, among other things, that the Proxy fails to provide shareholders with the following material information: (a)any projections, estimates and/or information concerning Thornburg's future business and financial prospects which would allow shareholders to make an informed decision as to whether to tender their shares in the Tender Offer; (b) any projections, estimates and/or information which would allow shareholders to evaluate any strategic alternative to the Tender Offer; (c) any projections or estimates which would allow shareholders to evaluate the impact of a potential bankruptcy on the Company and its preferred shareholders who have the right to a $25.00 per share liquidation preference; (d) any information regarding the viability of any strategic alternatives which the Board considered and/or information relied upon relating to those alternatives; (e) any information concerning the potential or actual conflicts between and among members of the Board, Thornburg and MatlinPatterson and the other parties to an agreement with MatlinPatterson, pursuant to which MatlinPatterson would lend Thornburg approximately $1.35 billion at an initial interest rate of 18% per annum (the "Agreement"); (f) any information, analysis, valuation, projections and/or estimates prepared by, or opinion rendered by, any financial advisor at the behest of the Board concerning the Tender Offer, the Agreement, or any strategic alternative considered by the Board.

The Complaint further alleges that the Thornburg Board has placed its own self-interest above those of Thornburg's shareholders by: (a) agreeing to sell 90% of the Company to MatlinPatterson in return for grossly inadequate consideration in the form of a risk-free loan of approximately $1.3 billion; and (b) launching a coercive tender offer aimed at eliminating the Company's preferred shareholders, simultaneously diluting and devaluing the common shares held by public shareholders.

On January 14, 2009, the plaintiffs filed a Stipulation agreeing to appoint Jonathan Sion and Dr. Hilla Louise Chashin-Simon Foundation as co-lead plaintiffs and to approve their selection of the law firms Glancy Binkow & Goldberg LLP and Squitieri & Fearon, LLP as co-lead counsel and the law firm of Silva, Saucedo & Gonzales, P.C. as liaison counsel.

On May 5, 2009, Thornburg Mortgage, Inc. filed a Suggestion of Bankruptcy. On March 4, 2010, the plaintiff who filed the initial complaint voluntarily dismissed his action without prejudice. Plaintiff Dr. Hilla Louise Chashin Simon Foundation, Inc. is not a party to this voluntary dismissal.

COMPANY INFORMATION:

Sector: Financial
Industry: Consumer Financial Services
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: TMA
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: D. New Mexico
DOCKET #: 08-CV-01005
JUDGE: Hon. William P. Johnson
DATE FILED: 10/27/2008
CLASS PERIOD START: 07/23/2008
CLASS PERIOD END: 10/01/2008
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Glancy Binkow & Goldberg LLP (Los Angeles)
    1801 Ave. of the Stars, Suite 311, Glancy Binkow & Goldberg LLP (Los Angeles), CA 90067
    310.201.915 310. 201-916 · info@glancylaw.com
  2. Silva, Saucedo & Gonzales, P.C.
    201 Third Street, N.W., Suite 1800; Post Office Box 100, Silva, Saucedo & Gonzales, P.C., NM 87103-0100
    505.246.8300 505.246.8300 · silvalaw@silvalaw.org
No Document Title Filing Date