Luminent Mortgage Capital Accused Of Securities Fraud

Luminent Mortgage Capital Accused Of Securities Fraud

Luminent Mortgage Capital, Inc.
Luminent Mortgage Capital, Inc. NYSE: LUM has been accused of securities fraud. If you are a current or former employee or are a member of any of Luminent Mortgage Capital, Inc. investment plans or profit sharing retirement plans you may be included in this possible Luminent Mortgage Capital, Inc. 401K or Employee Retirement Income Security Act (ERISA) class action. If you purchased or held Luminent Mortgage Capital, Inc. stock in one of those plans during the periods July 24, 2007 to August 6, 2007, you may have a claim.

Under ERISA, Luminent Mortgage Capital, Inc. employees can file a lawsuit against the company for putting stock options at risk. Luminent Mortgage Capital, Inc. employees have a claim if they can prove their employer violated its fiduciary duty to its employees. Fiduciary duty refers to a company's responsibility to the people who invest in it. If an employer puts the company's interest ahead of the investors', it has broken its fiduciary duty. A fiduciary is a person that exercises discretion over the management of plan assets or exercises discretionary control over the administration of the plan.

ERISA is a federal law that sets minimum standards for pension and health plans set up by private businesses. ERISA was designed to protect people who participate in employee benefit plans, including employees with stock options in a company. Stock options are a form of compensation in which employees are given the opportunity to purchase shares of the company stock at a certain price.

Register your Luminent Mortgage Capital, Inc. 401K / ERISA Complaint
If you have suffered from Luminent Mortgage Capital, Inc. 401K plan losses, you may qualify for damages or remedies that may be awarded in a possible Luminent Mortgage Capital, Inc. ERISA class action lawsuit. Please click the link below to submit your complaint and we will have a lawyer review your ERISA complaint.


Click here for legal help and a free evaluation of your possible case

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Luminent Mortgage Capital, Inc. NYSE: LUM

Company:	Luminent Mortgage Capital, Inc.
Ticker Symbol:	NYSE: LUM
Class Period::	July 24, 2007 to August 6, 2007
Date Filed:	Aug-08-07
Lead Plaintiff Deadline:	Oct-08-07
Court:	Northern District, CA
Allegations:

A class action lawsuit was commenced in the United States District Court for the Northern District of California on behalf of all purchasers of Luminent Mortgage Capital, Inc. ("Luminent" or the "Company") (NYSE:LUM) securities between July 24, 2007 and August 6, 2007, inclusive (the "Class Period").

The complaint charges defendants with violations of federal securities laws by, among other things, issuing a series of materially false and misleading press releases and SEC filings regarding Luminent's financial results and business prospects. Specifically, the complaint alleges that Luminent failed to disclose: (i) the Company was not sufficiently liquid; (ii) the Company's financial statements and reports were not prepared in accordance with GAAP and SEC rules; and (iii) that defendants lacked any reasonable basis to claim that the Company had ample liquidity and that the dividend payments were secure. As a result, the price of the Company's common stock was artificially inflated throughout the Class Period. On August 6, 2007, however, defendants shocked the market when they announced that the Company was cancelling the payment of its dividend. In response to the announcement, Luminent's share price dropped to a low of $3.75 on August 6, 2007 before trading was halted. It then opened on August 7, 2007 at $0.50, representing a drop of over 85%.

If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.

Register your Securities Complaint

If you have suffered from financial losses, you may qualify for damages or remedies that may be awarded in a possible class action lawsuit. Please click the link below to submit your complaint for a free evaluation.

Click here for legal help and a free evaluation of your possible case