Beazer Homes U.S.A., Inc. Securities Litigation
On September 15, 2009, the Honorable Clarence Cooper of the United States District Court for the Northern District of Georgia granted final approval to a $30.5 million settlement of the consolidated action, In re Beazer Homes U.S.A., Inc. Securities Litigation, No. 07-CV-725-CC (N.D. Ga.).
The Court appointed Carpenters Pension Trust Fund for Northern California and Glickenhaus & Co. as lead plaintiffs. Bernstein Liehard LLP serves as co-lead counsel with Milberg LLP and Chitwood Harley Harnes LLP. Lead plaintiffs alleged that during the class period, defendants made materially false and misleading statements concerning Beazer’s loan and mortgage origination practices and reported financial statements.
The settlement provides for the payment of $30.5 million to a class of investors who purchased Beazer Homes stock during period of January 27, 2005 through May 18, 2008 (the “Class Period”). The settlement is significant in that Beazer’s home loan and mortgage practices have been widely reported as a major contributor to the housing and financial crisis. Indeed, Beazer’s CEO, Ian McCarthy, was named by Anderson Cooper in 2008 as one of the “Top 10 Culprits of the Collapse.”