Toll Brothers Inc (NYSE: TOL) Investor Securities Class Action Lawsuit 04/16/2007

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Company Name(s): 
Toll Brothers
Case Name: 
Toll Brothers Shareholder Class Action Lawsuit 04/16/2007
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Approved
Affected Securities
NYSE: TOL
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
04/16/2007
Class Period Begin: 
12/09/2004
Class Period End: 
11/08/2005
Court of Filing: 
U.S. District Court for the Eastern District of Pennsylvania
Date Settled: 
02/24/2011
Settlement Amount: 
$25,000,000
Deadline to Participate in Settlement: 
03/16/2011
Summary: 

March 4, 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.

November 3, 2010 - The court preliminarily approved the settlement.

October 28, 2010 - Parties filed a stipulation of settlement.

September 2, 2008 - The court denied the defendants' motion to dismiss.

October 1, 2007 - The defendants filed a motion to dismiss.

August 14, 2007 - The lead plaintiff filed an amended complaint.

June 29, 2007 - The lead plaintiff and lead counsel were appointed.

June 18, 2007 - Lead plaintiff motions were filed.

April 16, 2007 - An investor in shares of Toll Brothers Inc (NYSE: TOL) filed a lawsuit in the U.S. District Court for the Eastern District of Pennsylvania against Toll Brothers Inc over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between December 9, 2004 and November 8, 2005.

The complaint charges Toll Brothers Inc and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Toll Brothers Inc is a home builder which specializes in building large, expensive homes. Specifically, the complaint alleges that defendants made a series of false and misleading statements indicating that Toll Brothers Inc’s business model, which was based on developing expensive homes for a niche market of high-end buyers, was unique and thus immune from the adverse impact of rising interest rates and other negative macro-economic factors that appeared to be negatively impacting the home-building industry during 2004 and 2005. As the truth was revealed to investors, including the deteriorating state of demand for Toll Brothers Inc’s homes, its constrained and shrinking number of active selling communities, the insufficient inventory of lots for Toll Brothers Inc to achieve 20% net income growth in 2006 and 2007, and the actual adverse impact of rising interest rates and negative macro-economic trends on traffic to Toll Brothers Inc communities and demand for its homes and thus its future prospects, Toll Brothers Inc stock plummeted, falling from its $58.25 per share high in July 2005 to as low as $33.72 per share on November 9, 2005, a 42% drop.