Securities Class Action Filed Against Downey Financial Corporation

Charles H Johnson and Associate has decided to file a Securities Class Action Lawsuit against the Downey Financial Corporation on behalf of its purchaser. The class action lawsuit is filed at the United States District Court for the Central District of California. The charges of the lawsuit are :
1) Downey’s portfolio of Option ARMs contained millions of dollars worth of impaired and risky securities, many of which were backed by subprime mortgage loans;
2) prior to the Class Period, Downey had seen Countrywide’s growth and had started to get more aggressive in acquiring loans from brokers such that the loans were extremely risky;
3) defendants failed to properly account for highly leveraged loans;

The purchasers of the publicly traded securities between the period of October 16, 2006 and March 14, 2008 are likely to be included here. Readers, if you are among the groups, please go to the court or you may be the lead plaintiff. For further inquiry please contact Neal Eisenbraun, Esq. (cjohnsonlaw@gmail.com) Charles H. Johnson & Associates 2599 Mississippi Street New Brighton, MN 55112 (651) 633-5685.

Source: Stockhouse.com

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