According to the Complaint, Beazer Homes designs, constructs, and sells single-family and multi-family homes for entry-level, move-up, or retirement-oriented home buyers under the Beazer Homes, Gatherings, and Choice Plans names. The Company sells its homes through commissioned new home sales counselors and independent brokers in Arizona, California, Nevada, Texas, Delaware, Indiana, Maryland, Tennessee, Virginia, Florida, Georgia, North Carolina, and South Carolina.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, the Complaint alleges that Defendants failed to disclose the following adverse facts, which were known to Defendants or recklessly disregarded by them as follows: (i) Beazer Homes’ California assets classified as land held for future development were deteriorating in value or improperly valuated; (ii) the foregoing created a foreseeable risk of an eventual substantial impairment that would negatively impact the profitability of the Company; and (iii) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On August 26, 2019, the Court issued an Order appointing Co-Lead Plaintiffs and Counsel. This case was voluntarily dismissed on October 18, 2019.