Shareholder Class Action Filed Against Opteum Inc. by the Law Firm of Schiffrin Barroway Topaz & Kessler, LLP
October 09 2007 - 5:00PM
PR Newswire (US)
RADNOR, Pa., Oct. 9 /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 Florida on behalf of all purchasers of the common stock
of Opteum Inc. (formerly NYSE: OPX; NYSE: BMN) ("Opteum" or the
"Company") pursuant or traceable to the Company's September 17,
2004 Initial Public Offering (the "IPO" or the "Offering") or the
Company's December 16, 2004 Secondary Offering, and including those
who purchased or otherwise acquired the Company's common stock
between November 3, 2005 and May 10, 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 .
The Complaint charges Opteum and certain of its officers and
directors with violations of the Securities Act of 1933 and the
Securities Exchange Act of 1934. More specifically, the Complaint
alleges that, in connection with the Company's IPO and Secondary
Offering, defendants failed to disclose or indicate the following:
(1) that the Company's interest costs at the time of the IPO and
Secondary Offering were substantially increasing; (2) that as a
result, the Company's various approaches to risk management did not
provide investors reasonable protections against losses; and (3)
that the Company lacked adequate internal and financial controls.
Additionally, throughout the Class Period, defendants failed to
disclose additional material adverse facts about the Company's
financial well-being, business relationships, and prospects.
Specifically, defendants failed to disclose or indicate the
following: (1) that the Company's integration of Opteum Financial
Services, LLC ("OFS") was not proceeding according to plan; (2)
that the Company's risk management controls and procedures were
incompatible with OFS' risk management controls and procedures; (3)
that OFS' loans were designed to produce short-term financial
results, which would subject the Company to unreasonable long-term
risk and expenses; (4) that the Company had improperly valued and
monitored collateral; (5) that the Company had underreported its
loan loss reserves; (6) that the Company's book value and projected
cash flows were materially overstated; (7) that the Company had
failed to adequately hedge its exposure to losses; (8) that the
Company and OFS lacked adequate internal and financial controls;
(9) that the Company's financial statements were not prepared in
accordance with Generally Accepted Accounting Principles; (9) that,
as a result of the above, the Company's financial statements were
false and misleading at all relevant times; and (10) that, as a
result of the foregoing, the Company's guidance about its 2007
financial and operational results were lacking in any reasonable
basis when made. On May 10, 2007, the Company shocked investors
when it reported its first quarter 2007 financial and operational
results. The Company reported $12.2 million in negative fair value
adjustments to OFS' mortgage servicing rights, $1.3 million in
negative fair value adjustments to OFS' residuals, and $8.8 million
in asset write downs at OFS. Additionally, the Company revealed
that nearly 50 percent of the Company's first quarter loss, or
$37.4 million, was attributable to a valuation allowance on OFS'
deferred tax assets, nearly 17.5 percent of the loss was
attributable to negative fair value adjustments to OFS' mortgage
servicing rights and retained interests in securitizations, and
slightly more than 10 percent of the loss was attributable to asset
write downs at OFS, due in part to the Company's decision to exit
the mortgage origination business. Also, the Company revealed that
its quarterly loss included $14.1 million in negative fair value
adjustments to mortgage loans held for sale and interest rate lock
commitments, and hedging losses of $4.6 million. On this news,
shares of the Company's stock fell $1.37 per share, or over 25
percent, to close on May 11, 2007 at $4.08 per share, on unusually
heavy trading volume. 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 http://www.sbtklaw.com/. If you are a member
of the class described above, you may, not later than November 19,
2007, 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. Under certain circumstances, one or more class members may
together serve as "lead plaintiff." Your ability to share in any
recovery is not, however, affected by the decision whether or not
to serve as a lead plaintiff. You may retain Schiffrin Barroway
Topaz & Kessler or other counsel of your choice, to serve as
your counsel in this action. CONTACT: Schiffrin Barroway Topaz
& Kessler, LLP Darren J. Check, Esq. Richard A. Maniskas, Esq.
280 King of Prussia Road Radnor, PA 19087 1-888-299-7706 (toll
free) or 1-610-667-7706 Or by e-mail at DATASOURCE: Schiffrin
Barroway Topaz & Kessler, LLP CONTACT: Darren J. Check, Esq. or
Richard A. Maniskas, Esq., both of Schiffrin Barroway Topaz &
Kessler, LLP, toll free, +1-888-299-7706, or +1-610-667-7706, Web
site: http://www.sbtklaw.com/
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