Imperial Holdings, Inc. hit by Investor Lawsuit over alleged Securities Laws Violations

A lawsuit was filed by an investor of Imperial Holdings, Inc. over alleged securities laws violations and NYSE-IFT stockholders should contact the Shareholders Foundation at mail@shareholdersfoundation.com
 
Oct. 12, 2011 - PRLog -- Following a FBI raid at Imperial Holdings’ Florida office on Sept. 27 an investor in Imperial Holdings, Inc.  shares filed a lawsuit against Imperial Holdings over alleged Violations of Federal Securities Laws.

If you purchased shares of Imperial Holdings, Inc.  pursuant and/or traceable to Imperial Holdings’ initial public offering on or about February 7, 2011 through September 27, 2011, you have certain options and you should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

According to the complaint the plaintiff alleges on behalf of all persons, who purchased the common stock of Imperial Holdings pursuant and/or traceable to Imperial Holdings’ initial public offering on or about February 7, 2011 through September 27, 2011, that Imperial Holdings and certain of its officers and directors violated the Securities Act of 1933.

Imperial Holdings is a company that purports to make lump-sum payments on legal settlements and life insurance policies.

In early February, 2011 Imperial Holdings filed with the U.S. Securities and Exchange Commission (“SEC”) the Registration Statement and Prospectus. It raised $179.2 million in the  initial public offering (“IPO”), selling over 16.66 million IFT shares to the public at $10.75 per share.
However, the plaintiff claims that the Registration Statement and Prospectus were negligently prepared and, as a result, contained untrue statements of material facts, omitted to state other facts necessary to make the statements made not misleading and were not prepared in accordance with the rules and regulations governing their preparation.

Imperial Holdings’ annual Revenue rose from $29.93million in 07 to $96.61million in 09, but then fell in 2010 to $76.90million. Its annual Net Income fell from a Net Income in 07 of $2.02million to a Net Loss of $8.64million in 09 and a Net Loss of $15.70million in 2010.

Over the next months shares of Imperial Holdings, Inc. (Public, NYSE-IFT) traded at roughly $10.

On August 11, 2011 Imperial Holdings, Inc. announced its Second Quarter 2011 Results.  Imperial Holdings, Inc. said that during the second quarter of 2011, Imperial reported total revenue of $29.2 million, compared to second quarter 2010 revenue of $20.6 million and that its Income before taxes was $13.8 million in the second quarter compared to a loss of $2.1 million during the same period last year.

Furthermore Imperial Holdings said that for the first six months of 2011, it reported total revenue of $54.1 million, compared to revenue of $40.4 million for the first six months of 2010 and its Net Income before taxes was $21.2 million for the first six months of 2011 compared to a loss of $9.6 million during the same period last year.

Despite those announcements NYSE- IFT shares began to lose value and dropped from slightly below $10 in the beginning of August 2011 to $6.52 on September 20, 2011.

Then on September 27, 2011, after the market closed Imperial Holdings, Inc.  announced that it was served with a search warrant issued by a Magistrate Judge for the U.S. District Court in the Southern District of Florida. Imperial Holdings, Inc said it understands that the company and certain of its employees, including its chairman and chief executive officer, and its president and chief operating officer, are under investigation in the District of New Hampshire with respect to its life finance business.

The same day Federal investigators raided the Florida offices of Imperial Holdings, the FBI said.

Local media were among the first to report the raid. One media outlet reported that FBI agents appeared to be gathering evidence inside Imperial Holdings' offices, and pictures on its website showed agents leaving the building. Another media outlet said an agent leaving the building said he was working for the U.S. Treasury.
Following the news about the Federal Raid shares of Imperial Holdings, Inc. (Public, NYSE-IFT) fell from $6.30 per share on September 27 to a close of $2.19 on September 28, 2011.

Those who purchased shares of Imperial Holdings, Inc.  pursuant and/or traceable to Imperial Holdings’ initial public offering on or about February 7, 2011 through September 27, 2011, have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

# # #

The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group. We do research related to shareholder issues and inform investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. At Shareholders Foundation, Inc. we are in contact with a large number of shareholders. We offer help, support, and assistance for every shareholder. We help investors find answers to their questions and equitable solutions to their problems. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
End
Trending
Most Viewed
Daily News



Like PRLog?
9K2K1K
Click to Share