Bronstein, Gewirtz & Grossman, LLC Announces That a Class Action Has Been Filed Against CompuCredit Corporation
August 08 2008 - 3:51PM
PR Newswire (US)
NEW YORK, Aug. 8 /PRNewswire/ -- Bronstein, Gewirtz & Grossman,
LLC announces that a class action lawsuit has been filed in the
United States District Court for the Northern District of Georgia
against CompuCredit Corporation ("CompuCredit" or the "Company")
(NasdaqGS: 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 . 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. DATASOURCE: Bronstein,
Gewirtz & Grossman, LLC CONTACT: Peretz Bronstein or Eitan
Kimelman, , +1-212-697-6484, both of Bronstein, Gewirtz &
Grossman, LLC Web site: http://www.bgandg.com/
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