Shareholder Class Action Filed Against iSTAR Financial Inc. by the Law Firm of Schiffrin Barroway Topaz & Kessler, LLP
RADNOR, Pa., April 24 /PRNewswire/ -- The following statement was issued today by the law firm of Schiffrin Barroway Topaz & Kessler, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Southern District of New York on behalf of all purchasers of common stock of iSTAR Financial Inc. (NYSE:SFI) ("iSTAR" or the "Company") pursuant or traceable to the Secondary Public Offering ("SPO") on December 13, 2007, inclusive (the "Class Period"). If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin Barroway Topaz & Kessler, LLP (Darren J. Check, Esq. or Richard A. Maniskas, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@sbtklaw.com.
The Complaint charges iSTAR and certain of its officers and directors with violations of the Securities Act of 1933. iSTAR is a finance company focused on the commercial real estate industry. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company was experiencing "material change" to its continuing operations; (2) specifically, the Company's ability to operate was being adversely impacted by negativity in the credit markets; (3) that the Company's corporate loan and debt portfolio showed more than $200 million in unrecognized losses; (4) that the Company lacked adequate internal and financial controls; and (5) that, as a result of the foregoing, the Company's Registration Statement was false and misleading at all relevant times. On February 28, 2008, the Company announced that for the fourth quarter of 2007, it would report a loss of $78.7 million, or $0.62 per share. The Company stated that the results were impacted by $134.9 million of non-cash charges associated with the impairment of two credits in its corporate loan and debt portfolio. Finally, the Company stated that it increased its loan loss provisions by $113 million. In response to this news, shares of the Company's stock declined $2.66 per share, or 11.64 percent, to close on February 28, 2008 at $20.19 per share, on unusually heavy trading volume. Shares of the Company's stock continued to fall over the next several days, closing on March 6, 2008 at $13.98. This closing price on March 6, 2008 represented a cumulative loss of $14.43, or over 50 percent, of the value of the Company's shares at the time of its SPO just months prior. Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin Barroway Topaz & Kessler which prosecutes class actions in both state and federal courts throughout the country. Schiffrin Barroway Topaz & Kessler is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. For more information about Schiffrin Barroway Topaz & Kessler or to sign up to participate in this action online, please visit www.sbtklaw.com If you are a member of the class described above, you may, not later than June 13, 2008, move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. CONTACT: Schiffrin Barroway Topaz & Kessler, LLP First Call Analyst:
CONTACT: Darren J. Check, Esq. or Richard A. Maniskas, Esq., both of Web site: http://www.sbtklaw.com/
2008-04-24 18:05:23 0345030 PRNEWSWIRE
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