Levitt Corporation/Woodbridge Holdings Corporation (NYSE: LEV) (NYSE: WDG) Investor Securities Class Action Lawsuit 01/25/2008

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Company Name(s): 
Woodbridge Holdings Corp.(Levitt Corp)
Case Name: 
Woodbridge Holdings Corp.(Levitt Corp) Shareholder Class Action Lawsuit 01/25/2008
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Approved
Affected Securities
NYSE: WDG
NYSE: LEV
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
01/25/2008
Class Period Begin: 
01/31/2007
Class Period End: 
08/14/2007
Court of Filing: 
U.S. District Court for the Southern District of Florida
Date Settled: 
09/29/2011
Settlement Amount: 
$1,950,000
Deadline to Participate in Settlement: 
09/25/2011
Summary: 

September 29, 2011 - 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.

June 27, 2011 - The court preliminarily approved the settlement.

June 14, 2011 - Parties filed a stipulation of settlement.

August 31, 2010 - The court ordered the substitution of the lead plaintiff.

August 11, 2011 - The defendants filed a motion to dismiss.

July 30, 2010 - The lead plaintiff filed a third amended complaint.

September 18, 2009 - The lead plaintiff filed a second amended complaint.

September 23, 2008 - The lead plaintiff filed an amended complaint.

September 3, 2008 - The lead plaintiff filed an amended complaint.

July 8, 2008 - The lead plaintiff and lead counsel were appointed.

March 25, 2008 - A lead plaintiff motion was filed.

January 25, 2008 -An investor in shares of Levitt Corporation (NYSE: LEV) (now known as Woodbridge Holdings Corporation NYW: WDG) filed a lawsuit in the U.S. District Court for the Southern District of Florida against Levitt Corporation/Woodbridge Holdings Corporation in connection with certain allegedly false and misleading statements made between January 31, 2007 and August 14, 2007.

The complaint charges Levitt Corporation and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Levitt Corporation, together with its subsidiaries, operates as a homebuilding and real estate development company in the southeastern United States.

According to the complaint, on January 31, 2007, Levitt Corporation announced that it agreed to merge with BFC Financial Corp. Based on BFC stock’s closing price on the previous trading day, the proposed transaction valued Levitt stock at $14.41 per share - a premium of 32 percent over the closing price of $10.88 per share on the previous trading day. The complaint alleges that defendants issued materially false and misleading statements and failed to disclose: (i) that Levitt Corporation’s Levitt and Sons subsidiary was in much worse financial condition than publicly represented. Levitt and Sons was saddled with excessive amounts of unneeded and overpriced land which would not be feasible to develop for some time. Furthermore, Levitt and Sons was struggling to complete projects it had already begun and in many instances was failing to complete construction of homes that it had already sold as it lacked the financial resources to follow through on its contracts; (ii) that as a result of the foregoing, Levitt Corporation was materially overstating its financial results because it was failing to timely record an impairment in the value of its homebuilding inventory at Levitt and Sons. Although defendants acknowledged the difficult housing market, their public statements failed to advise investors of the true financial condition of Levitt Corporation; (iii) that Levitt Corporation’s loans and advances to Levitt and Sons would not be recovered as the subsidiary lacked the financial resources to pay now and in the foreseeable future; and (iv) that Levitt and Sons was insolvent.

Then, on August 15, 2007, the company announced that the merger agreement with BFC had been terminated, without giving any explanation. Upon this news, shares of Levitt Corporation’s stock fell $0.79 per share, or over 21%, to close at $2.96 per share. Subsequently, on November 9, 2007, it was announced that Levitt and Sons filed for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code.