IndyMac Bancorp Inc (NYSE: IMB) Investor Securities Class Action Lawsuit 03/12/2007

If you purchased shares of IndyMac Bancorp Inc (NYSE: IMB), you might have certain options and 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): 
IndyMac Bancorp
Case Name: 
IndyMac Bancorp Shareholder Class Action Lawsuit 03/12/2007
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Approved
Affected Securities
NYSE: IMB
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
03/12/2007
Class Period Begin: 
03/01/2006
Class Period End: 
03/01/2007
Court of Filing: 
U.S. District Court for the Central District of California
Deadline To File for Lead: 
05/11/2007
Date Settled: 
07/29/2013
Settlement Amount: 
$5,500,000
Deadline to Participate in Settlement: 
12/28/2012
Summary: 

July 29, 2013 - The court approved the settlement, entered the orders approving the plan of allocation, the motion for attorneys’ fees and expenses, and dismissed the action with prejudice.

August 10, 2012 - The court preliminarily approved the settlement.

August 7, 2012 - Parties filed a stipulation of settlement.

March 29, 2010 - The court denied the defendant's motion to dismiss.

February 16, 2010 - The lead plaintiffs filed a sixth amended complaint.

December 11, 2009 - The court denied the defendant's motion to dismiss.

October 26, 2009 - A defendant filed a motion to dismiss.

October 5, 2009 - The lead plaintiffs filed a fifth amended consolidated complaint on behalf of investors who purchased IndyMac Bancorp Inc (NYSE: IMB) common shares between March 1, 2006 and March 1, 2007. The lead plaintiffs allege that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between March 1, 2006 and March 1, 2007.

September 24, 2009 - The court granted the defendant's motion to dismiss and granted lead plaintiffs leave to file an amended complaint.

July 6, 2009 - A defendant filed a motion to dismiss.

June 1, 2009 - The lead plaintiffs filed a fourth amended consolidated complaint on behalf of investors who purchased IndyMac Bancorp Inc (NYSE: IMB) common shares between March 1, 2006 and January 25, 2007. The lead plaintiffs allege that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between March 1, 2006 and January 25, 2007.

May 11, 2009 - The court granted the defendants' motion to dismiss and granted lead plaintiffs leave to file an amended complaint.

July 1, 2008 - The defendants filed a motion to dismiss.

June 6, 2008 - The lead plaintiffs filed a third amended complaint.

May 8, 2008 - The court granted the defendants' motion to dismiss and granted lead plaintiffs leave to file an amended complaint.

February 19, 2008 - The defendants filed a motion to dismiss.

January 29, 2008 - Lead plaintiffs voluntarily dismissed any and all claims against one defendant without prejudice.

January 18, 2008 - The lead plaintiffs filed a second amended complaint.

October 9, 2007 - The defendants filed a motion to dismiss.

September 7, 2007 - The lead plaintiffs filed an amended consolidated complaint on behalf of investors who purchased IndyMac Bancorp Inc (NYSE: IMB) common shares between January 26, 2006 and January 25, 2007. The lead plaintiffs allege that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between January 26, 2006 and January 25, 2007.

June 18, 2007 - The lead plaintiffs and lead counsel were appointed.

May 16, 2007 - Lead plaintiff motions were filed.

March 12, 2007 - An investor in shares of IndyMac Bancorp Inc (NYSE: IMB) filed a lawsuit in the U.S. District Court for the Central District of California against IndyMac Bancorp over alleged violations of Federal Securities Laws between May 4, 2006 and March 1, 2007.

The complaint was filed against IndyMac Bancorp Inc and certain of its officers and/or directors for violations of the Securities Exchange Act of 1934. IndyMac Bancorp Inc operates as the holding company for IndyMac Bank FSB, a thrift/mortgage bank, which provides mortgage products and services, including adjustable-rate mortgages, fixed-rate mortgages, construction-to-permanent loans, subprime mortgages, and reverse mortgages.

Specifically, the complaint alleges that between May 4, 2006 and March 1, 2007, defendants issued materially false and misleading statements concerning the Company’s business and financial results. As a result of defendants’ failure to fully disclose problems with IndyMac Bancorp Inc’s internal controls and loan loss provisions, IndyMac Bancorp Inc stock (NYSE: IMB) traded at artificially inflated prices between May 4, 2006 and March 1, 2007, reaching a high of $50.11 per share in May 2006.

Throughout between May 4, 2006 and March 1, 2007, defendants issued public statements which touted IndyMac Bancorp Inc’s business and financial performance, but which failed to fully disclose problems with IndyMac Bancorp Inc’s internal controls and underwriting practices and that IndyMac Bancorp Inc maintained inadequate provisions for loan losses. These partial disclosures only hinted at IndyMac Bancorp Inc’s problems, and had the effect of maintaining IndyMac Bancorp Inc’s stock price (NYSE: IMB) at inflated levels between May 4, 2006 and March 1, 2007. At the end of that time, as the news of IndyMac Bancorp Inc’s problems seeped into the market, IndyMac Bancorp Inc’s share price dropped following each revelation.

The complaint further alleges that on March 1, 2007, IndyMac issued a press release in which a “Letter to Shareholders” acknowledged, among other thing, problems with IndyMac Bancorp Inc’s underwriting practices and loan delinquencies.

That same day, March 1, 2007, as a result of this news, IndyMac Bancorp Inc’s stock (NYSE: IMB) dropped from $34.33 to a close of $32.16 per share, on volume of more than 9.6 million shares, four times the average three-month volume.