SAN DIEGO--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP announces that a securities class action case has been filed on behalf of purchasers of Beazer Homes USA, Inc. (NYSE:BZH) securities between August 1, 2014 and May 2, 2019 (the “Class Period”) in the U.S. District Court for the Southern District of New York, captioned Strougo v. Beazer Homes USA, Inc., No. 1:19-cv-05301, and assigned to Judge Caproni. The complaint charges Beazer Homes and two of its executive officers with violations of the Securities Exchange Act of 1934.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Beazer Homes securities during the Class Period to seek appointment as lead plaintiff. A lead plaintiff acts on behalf of all other class members in directing the litigation. The lead plaintiff can select a law firm of its choice. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff or have questions concerning your rights, please contact Brian Cochran at 800/449-4900 or 619/231-1058, or via e-mail at bcochran@rgrdlaw.com. Lead plaintiff motions must be filed with the court no later than August 5, 2019.
The complaint alleges that throughout the Class Period, defendants failed to disclose that Beazer Homes’ California assets classified as land held for future development were deteriorating in value or improperly valuated, which created a foreseeable risk of an eventual substantial impairment that would negatively impact the profitability of the Company. As a result of this information being withheld from the market, Beazer Homes securities traded at artificially inflated prices during the Class Period, with its stock price reaching a high of more than $21 per share.
On May 2, 2019, Beazer Homes announced its financial and operating results for the second quarter of 2019, including a net loss from continuing operations of $100.8 million for the quarter, reflecting $147.6 million in impairments on certain California assets the Company had acquired before 2007. According to defendants, the impairments were in “response to recent changes in market conditions,” which made it “necessary to reduce prices in some of [the Company’s] active communities, all of which were previously classified as land held for future development.” Analysts expressed concern regarding the timing of the impairment, given that the California assets had been on Beazer Homes’ books for more than 11 years. On this news, the price of Beazer Homes stock fell more than 12% to close at $12.51 per share on May 3, 2019.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For six consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry. Please visit http://www.rgrdlaw.com for more information.
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