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Strategies & Market Trends : Can you beat 50% per month? -- Ignore unavailable to you. Want to Upgrade?

To: Smiling Bob who wrote (10893)	5/19/2007 2:14:30 PM
From: Smiling Bob	Respond to of 19256

BZH class action filed Current uncertainty of new home mkt should make HBs more vulnerable to this type of news. --- The Complaint alleges that during the Class Period, defendants issued false and misleading statements regarding the Company's growth, business, prospects and then-current financial condition and engaged in improper and possibly illegal mortgage lending activities for several years in order to misleadingly enhance the Company's business. As a result of defendants' false and misleading statements and omissions, Beazer stock traded at artificially inflated prices during the Class Period, reaching a high of $82.03 per share in January 2006. On March 18, 2007, The Charlotte Observer reported that federal housing officials were reviewing whether Beazer complied with federal rules in arranging government-insured loans for buyers in its subdivisions. On March 21, 2007, Beazer disclosed that its CFO resigned his employment. Then, on March 27, 2007, the Associated Press reported that the FBI, the United States Attorneys' Office in Charlotte, North Carolina, the IRS, and the U.S. Department of Housing and Urban Development launched joint criminal inquiries of Beazer's corporate, mortgage, and investment related activities. After the market closed on March 27, 2007, Beazer issued a press release responding to media reports and inquiries into the possibility of a federal investigation of the Company in connection with alleged mortgage fraud. This news caused Beazer stock to fall $2.64 per share to close at $28.77 per share on March 28, 2007, a one-day decline of 9% and a 65% decline from its Class Period high of $82.03 per share. On May 3, 2007, the Company filed a Form 8-K with the SEC revealing that it received notice on May 1, 2007 that the SEC is conducting an informal inquiry to determine whether any person or entity related to Beazer has violated the federal securities laws.