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A
NOT SO CAREFUL IPO
October
17, 2007 |
A securities class action has been filed in the United States District Court for the Southern District of New York against Care Investment Trust, Inc. (NYSE:CRE) for potential violations of the Federal Securities laws.
It is alleged that on or about June 22, 2007, the Company issued more than 15 million shares of Care Investments common stock in its IPO at $15.00 per share, thereby raising more than $225 million. The complaint against the Company alleges that the Prospectus contained inaccurate statements of material fact because it failed to disclose that certain of the assets in the portfolio of healthcare-related mortgage assets, which was created upon the consummation of the IPO, were materially impaired. Thus, in short it was overvalued and the Company was experiencing increasing difficulty in securing its warehouse financing lines.
Investors who purchased Care Investment common stock in or traceable to the Company's Initial Public Offering (IPO) on or about June 22, 2007 may be affected.
Financial Controllers Leaves LDK Solar
When a key player leaves a company and expresses concern, it is a strong warning sign for investors. Often, share prices may drop significantly, and, sometimes, disgruntled investors may file against the Company. A recent example is LDK Solar Company (NYSE:LDK), where investors have filed securities class action lawsuits against the Company for potential violations of Federal Securities laws.
On October 3, 2007, it was reported that LDKs financial controller had left the company after making allegations of poor controls and an inventory discrepancy. In a research note, Piper Jaffray said it had confirmed that LDKs financial controller had recently left the company and that it was "aware of the former controllers allegations of poor financial controls and a 250-tonne inventory discrepancy."
Since October 3, 2007, LDK shares have declined from $68.31 at the close of trading on October 2, 2007, to $37.50 per share at the close of trading on October 8, 2007, a decline of $30.81 per share, or approximately 45%.
Investors who purchased LDK securities in or traceable to the Company's May 31, 2007 IPO may be affected.
Other cases under investigation include Harmon International Industries, Inc. (NYSE: HAR), Micrus Endovascular Corp. (NASDAQ: MEND) and Orbcomm, Inc. (NASDAQ: ORBC).
If you are an affected investor in any of these companies, you may wish to contact us at 202 338 1756 or email us at m.mcnair@att.net to discuss your options.
Likewise, if you happen to be aware of corporate restatements or other financial fraud -- especially if you're a victim -- you're encouraged to contribute to the Sleuth by giving your own tip-offs at http://securitiessleuth.typepad.com or by e-mailing info@securitiessleuth.com.
If you have a friend or colleague you think would benefit from The Sleuth, please pass along this issue and ask them to sign up at
http://www.cartville.com/app/join.asp?MerchantID=47994.
Warmest regards,
Mark McNair
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