Lowey Dannenberg Cohen & Hart, P.C. Announces Final Approval of Luminent Mortgage Capital, Inc. Securities Class Action Settlement

Lowey Dannenberg Cohen & Hart, P.C. Announces Final Approval of Luminent Mortgage Capital, Inc. Securities Class Action Settlement - 5-8-2009

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2009 News and Press Releases

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News	News 2009
HEADLINES \| SETTLEMENTS AND DISMISSALS \| COURT FILINGS LINKS TO OTHER NEWS \| NEWS ARCHIVE	HEADLINES ARCHIVED SETTLEMENTS AND DISMISSALS ARCHIVED

SETTLEMENT NEWS:

Lowey Dannenberg Cohen & Hart, P.C. Announces Final Approval of Luminent Mortgage Capital, Inc. Securities Class Action Settlement
Staff Writer

Business Wire. May 8, 2009
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EXCERPT: Lowey Dannenberg Cohen and Hart, P.C. (“Lowey Dannenberg”) announces that on April 29, 2009, Judge Phyllis J. Hamilton gave final approval to the $8,000,000 settlement of a securities class action on behalf of a class of investors in Luminent Mortgage Capital, Inc. (“Luminent” or the “Company”) common stock and options during the period February 9. 2007 through August 6, 2007 (the “Class Period”). Lead Counsel Lowey Dannenberg represented Lead Plaintiff Southern Investment Company on behalf of the Class. The settlement payment resolved claims that Luminent senior officers, which invested in mortgage-backed securities and mortgage loans, falsely represented Luminent’s ample liquidity, exposure to subprime debt and the safety of its upcoming dividend payment. These bullish representations were alleged to have invited investors’ confidence just weeks before the Company disclosed a credit crisis and suspended its dividend in early August 2007, which resulted in an immediate 85% decline in the value of its stock. Luminent subsequently filed for Chapter 11 protection. In approving the settlement Judge Hamilton praised the recovery as “excellent” particularly in light of the bankruptcy, observing that the Class response reflected that it was an “extraordinary” outcome.

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