A class action lawsuit has been filed in the United States District Court for the Eastern District of Pennsylvania, on behalf of purchasers of the common stock of RAIT Financial Trust between January 10, 2007 through July 31, 2007, inclusive.
The class action alleges that defendants violated the federal securities laws by issuing materially false and misleading statements contained in press releases and filings with the Securities and Exchange Commission during the Class Period. Specifically, the Complaint alleges that during the Class Period, defendants failed to disclose: (i) that the Company was exposed to high risk debt instruments from distressed lenders and homebuilders; (ii) that the Company would be forced to write off a large portion of its portfolio as a loss; (iii) that the Company failed to adequately reserve for potential losses; and (iv) as a result of the foregoing, the Company’s ability to pay out dividends to its shareholders and its ability to generate future revenue would be in serious doubt. Moreover, the values of the Company’s net income and earnings were materially overstated at all relevant times.
If you purchased RAIT securities during the Class Period, you may, no later than October 1, 2007, move to be appointed as a Lead Plaintiff in this class action. A Lead Plaintiff is a representative, chosen by the Court, that acts on behalf of other class members in directing the litigation.