Bronstein, Gewirtz & Grossman, LLC Announces That a Class Action Has Been Filed Against CompuCredit Corporation
July 24 2008 - 5:17PM
Marketwired
NEY YORK, NY (NASDAQ: CCRT) and various individuals on behalf of
purchasers of CompuCredit securities who purchased between November
6, 2006 and June 9, 2008 (the "Class Period").
The complaint alleges CompuCredit issued materially false and
misleading statements regarding the Company's business and
financial results. As a result of CompuCredit's false statements,
its stock traded at artificially inflated prices during the Class
Period, reaching its Class Period high of $40.61 per share on
December 12, 2006.
According to the complaint, the true facts, which were known by
the defendants but concealed from the investing public during the
Class Period, were as follows: (a) the Company's assets contained
millions of dollars worth of impaired and risky securities, many of
which were backed by loans to subprime borrowers; (b) the Company
was not adequately accounting for its provision for loan losses in
violation of Generally Accepted Accounting Principles, causing its
financial results to be materially misstated; (c) the Company's
improper marketing and collection practices would lead to large
fines and would harm the Company's future results; (d) the Company
had far greater exposure to anticipated losses and defaults related
to its subprime customers than it had previously disclosed; (e)
given the deterioration in the market for asset-backed securities
related to subprime consumers, the Company would be forced to
reduce its lending operations due to liquidity concerns as it
relied upon the sale of its asset-backed securities to fund its
ongoing operations; and (f) given the increased volatility in the
subprime market and increased level of delinquencies and defaults
that CompuCredit was experiencing, the Company had no reasonable
basis to make projections about its financial results.
No Class has yet been certified in the above action. If you wish
to review a copy of the Complaint, to discuss this action, or have
any questions, please contact either Peretz Bronstein or Eitan
Kimelman of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484
or via email eitan@bgandg.com. Those who inquire by e-mail are
encouraged to include their mailing address and telephone
number.
Bronstein Gewirtz & Grossman, LLC is a corporate litigation
boutique. Our primary expertise is the aggressive pursuit of
litigation claims on behalf of our clients. In addition to
representing institutions and other investor plaintiffs in class
action security litigation, the firm's expertise includes general
corporate work, private securities offerings, and securities
arbitration.
Contact: Peretz Bronstein or Eitan Kimelman Bronstein, Gewirtz
& Grossman, LLC 212-697-6484 Email Contact
Compucredit (NASDAQ:CCRT)
Historical Stock Chart
From May 2024 to Jun 2024
Compucredit (NASDAQ:CCRT)
Historical Stock Chart
From Jun 2023 to Jun 2024