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Class Action Salad

Posted on May 19, 2008

I fear that if the complaint in this case is written with anything like the care and clarity of this press release, Downey probably has little to worry about.The Complaint charges that Downey and certain of its officers and directors violated federal securities laws by issuing materially false statements regarding the Company's financial results. Specifically, the Complaint alleges that defendants concealed the following: (i) 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; (ii) prior t...

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