Eleventh Circuit Affirms Dismissal of Securities Fraud Complaint Against Mortgage Lender

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Stockholder plaintiffs brought a purported class action against HomeBanc Corporation and certain of its officers and directors alleging that the mortgage and lending company committed securities fraud by improperly concealing numerous purchases of subprime mortgage securities, which allegedly caused substantial losses when the company collapsed during the housing and subprime market crash.

The district court granted the defendants' motion to dismiss the complaint because, among other things, plaintiffs' complaint failed to adequately plead scienter.

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Published In: Business Torts Updates, Civil Procedure Updates, Securities Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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