According to the complaint, Plaintiff brings this class action on behalf of two classes of similarly situated purchasers and/or holders of: (i) Impac Series B Preferred Shares (the “Preferred B Class”); and (ii) Impac Series C Preferred Shares (the “Preferred C Class” and, together with the Preferred B Class, the “Classes”) who have been, and continue to be, deprived of the opportunity to realize fully the benefits of their investment in the Company, and/or who have been otherwise damaged as a result of Defendants’ conduct. This Complaint is brought against Impac and the Company’s Officers and Directors (the Officers and Directors are the “Individual Defendants,” and together with Impac, the “Defendants”).
In 2009, Impac filed unauthorized false, invalid amendments to the Company’s corporate charter. These amendments purport to eliminate all of the important and valuable terms of two Series of Impac perpetual Preferred stock. Each Preferred has a face value of $25. The Series B Preferred (“Preferred B”) paid quarterly dividends at the rate of 9.375% and the Series C Preferred (“Preferred C”) paid quarterly dividends at the rate of 9.125%. The fraudulently filed amendments make these Preferred stocks (with a total face value of $161.8 million) substantially worthless by eliminating the cumulating of discretionary dividend payments totaling $14.9 million annually and all other valuable provisions protecting the investment of the Preferred holders.
Impac misrepresented its true financial condition to make it appear to the holders of its Preferred stock (which the Company sought to purchase and retire for 29 and 28.5 cents per share) that IMPM was almost insolvent and would never be able to pay dividends on the Preferred.
On May 25, 2011, the named Plaintiff filed a notice of voluntary dismissal of the entire case without prejudice.