Hovnanian Enterprises Inc. Case 09/14/2007

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Company Name(s): 
Hovnanian Enterprises
Case Name: 
Hovnanian Enterprises Inc. Case 09/14/2007
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Proposed
Case Status: 
Settlement Approved
Affected Securities
NYSE: HOV
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
09/14/2007
Class Period Begin: 
06/30/2005
Class Period End: 
12/19/2007
Settlement Amount: 
$4,000,000
Deadline to Participate in Settlement: 
02/12/2010
Settlement Notice: 
Settlement Proof: 
Summary: 

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.