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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