Desarrolladora Homex SAB de CV (ADR) (OTCMKTS:DHOXY) Investor Securities Class Action Lawsuit 03/14/2017

If you purchased shares of Desarrolladora Homex SAB de CV (ADR) (formerly NYSE: HXM; formerly OTCMKTS: DHOXQ; formerly OTCMKTS: DHOXY) , you have certain options and for certain investors are short and strict deadlines running. Deadline: May 15, 2017. Desarrolladora Homex SAB de CV investors should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Desarrolladora Homex SAB de CV
Case Name: 
Desarrolladora Homex SAB de CV Shareholder Class Action Lawsuit 03/14/2017
Case Status: 
Lawsuit Filed
Affected Securities
OTCMKTS: DHOXY
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
03/14/2017
Class Period Begin: 
04/30/2012
Class Period End: 
05/05/2016
Court of Filing: 
U.S. District Court for the Eastern District of New York
Deadline To File for Lead: 
05/15/2017
Summary: 

March 14, 2017 (Shareholders Foundation) - An investor in shares of Desarrolladora Homex SAB de CV (ADR) (OTCMKTS:DHOXY) filed a lawsuit in the U.S. District Court for the Eastern District of New York over alleged violations of Federal Securities Laws by Desarrolladora Homex SAB de CV a/k/a Homex Development Corp. (formerly NYSE: HXM; formerly OTCMKTS: DHOXQ; formerly OTCMKTS: DHOXY in connection with certain allegedly false and misleading statements made between April 30, 2012 and May 5, 2016.

According to the complaint the plaintiff alleges on behalf of purchasers of Desarrolladora Homex SAB de CV (ADR) (formerly NYSE: HXM; formerly OTCMKTS: DHOXQ; formerly OTCMKTS: DHOXY) common shares between April 30, 2012 and May 5, 2016, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between April 30, 2012 and May 5, 2016, the defendants made false and/or misleading statements and/or failed to disclose that between 2010 and 2013, Desarrolladora Homex SAB de CV overstated its revenue by 355% or roughly $3.3 billion by reporting fictitious sales of more than 100,000 homes, that between 2010 and 2013, Desarrolladora Homex SAB de CV overstated the number of units it sold by over 100,000 units or 317% of actual units sold, that Desarrolladora Homex SAB de CV and certain of its Headquarters Financial Reporting Personnel knowingly and intentionally engaged in a scheme to materially overstate Desarrolladora Homex SAB de CV’s revenues, homes sold, and other related financial items, and that as a result, defendants’ statements about Homex’s business, operations and prospects were materially false and misleading and/or lacked a reasonable bases at all relevant times.

On March 3, 2017, Desarrolladora Homex SAB de CV agreed to settle charges with the U.S. Securities and Exchange Commission (“SEC”) for allegedly reporting $3.3 billion in fraudulent sales revenue to boost revenues in its financial statements during a three year period. According to the SEC’s complaint, between 2010 and 2013, Desarrolladora Homex SAB de CV overstated its revenue by 355%, or roughly $3.3 billion by reporting fictitious sales of more than 100,000 homes, inflating the numbers of homes actually sold more than fourfold. The SEC’s complaint further alleges that “Homex’s Headquarters Financial Reporting Personnel intentionally and knowingly uploaded false information into the Company’s internal reporting and accounting systems in order to perpetrate the fictitious revenue scheme.”