E*TRADE hit with class action

Court Alerts

[##_1L|1277350565.jpg|width="120" height="138" alt=""|_##]Coughlin Stoia LLP yesterday filed a class-action suit against E*TRADE Financial Corp., accusing the company of violating the Securities Exchange Act of 1934. The firm is filing suit on behalf of E*TRADE’s investors who purchased common stock in the firm between Dec. 14, 2006 and Sept. 25, 2007. E*TRADE’s CEO Mitchell H. Caplan and Robert J. Simmons, CFO and principal accounting officer, were also named as individual defendants in the suit.

In its complaint, San Diego-based Coughlin Stoia alleged that E*TRADE failed to disclose that it was experiencing high delinquency rates in its mortgage and home equity portfolios.

Instead, the suit alleges that E*TRADE had an overvalued securities portfolio with mortgage-backed assets.

They also allege that the firm kept investors in the dark about the falling mortgage market, which made the value of E*TRADE’s shares plummet.

Furthermore, throughout August, while the credit markets crashed and E*TRADE’s stock price dropped, the company continued insisting that was financially sound and that concerns on its market capitalization were unfounded, the suit said.

The financial services company, which originated mortgages and subprime loans, pulled from its wholesale mortgage business on Sept. 17.

Coughlin Stoia Geller Rudman & Robbins LLP was founded by William S. Lerach, the famed class-action lawyer.

A spokeswoman from E*TRADE said that the company does not comment on pending litigation.

Related listings

  • Brothers plead guilty to mortgage fraud

    Brothers plead guilty to mortgage fraud

    Court Alerts 10/04/2007

    [##_1L|1054133133.jpg|width="120" height="88" alt=""|_##]Two brothers whose convictions for running a mortgage scheme in suburban Rochester were recently overturned pleaded guilty Wednesday to mortgage fraud to avoid a new trial. Robert Amico, 45, an...

  • Friedman appeals to reverse sex abuse guilty plea

    Friedman appeals to reverse sex abuse guilty plea

    Court Alerts 10/04/2007

    [##_1L|1205486439.jpg|width="130" height="90" alt=""|_##]Jesse Friedman's last chance to clear his name of child molestation charges now rests in the hands of a federal judge who heard evidence on his case at a hearing yesterday. Friedman, 38, is try...

  • Vick not expected to attend court hearing

    Vick not expected to attend court hearing

    Court Alerts 10/03/2007

    [##_1L|1193276699.jpg|width="130" height="90" alt=""|_##]Michael Vick’s lawyers will make their first Surry County, Va. court appearance Wednesday for state dogfighting charges against the suspended Atlanta Falcons quarterback. Vick, already schedule...

New Rochelle, New York Personal Injury Lawyers

If you or a loved one has been injured in an accident, contact Kommer, Bave & Ollman, LLP, in New Rochelle, New York, immediately. We can answer all your questions and work with you to determine if you have the grounds for a personal injury lawsuit. The attorneys at our firm are determined to resolve even the most difficult of cases. We will work closely with you to determine the best course of action to get your claim or case resolved in the most efficient way possible. We will fight for your right to compensation! No one should have to suffer a financial burden from the result of another person’s carelessness. The attorneys at Kommer, Bave & Ollman, LLP will aggressively fight to ensure that justice is served on your behalf.

Business News

New York & New Jersey Family Law Matters We represent our clients in all types of proceedings that include termination of parental rights. >> read