Hovnanian Enterprises Inc. Case 09/14/2007
The complaint charges the Company’s Executive Vice President and Chief Financial Officer with violations of the Securities Exchange Act of 1934.
Hovnanian engages in building residential homes in the United States. It designs, constructs, markets, and sells single-family detached homes, attached townhomes and condominiums, mid-rise and high-rise condominiums, urban infill, and adult homes.
Specifically, the alleges that during the Class Period, the defendant issued materially false and misleading statements regarding the Company’s business and prospects. As a result of these misleading statements, Hovnanian stock traded at artificially inflated prices during the Class Period, reaching a high of $54.29 per share in January 2006.
As a result of defendant’s misleading statements and failure to disclose, Hovnanian stock traded at inflated levels during the Class Period. However, as a direct result of the market learning of defendant’s wrongdoing, the price of Hovnanian shares declined and plaintiff and the class suffered a loss on their investment in Hovnanian.