Beazer Homes USA (BZH) Shareholder Derivative Lawsuit
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In conjunction with our partner lawyers, we are currently investigating claims on behalf of current shareholders of Beazer Homes USA to determine whether a shareholder derivative lawsuit may be warranted. A shareholder derivative suit is a lawsuit instigated by a shareholder of a corporation, not on the shareholder's own behalf, but on behalf of the corporation . The shareholder brings an action in the name of the corporation against the parties allegedly causing harm to the corporation. Often derivative suits are brought against officers or directors of a corporation for violations of fiduciary duties owed to the shareholders vis-a-vis the corporation. Any proceeds of a successful action are awarded to the corporation. Often, derivative suits can be a strong vehicle for corporate governance reform.
Our Experienced Derivative Lawyers and Attorneys Have Years of Experience Representing Shareholders in Numerous Derivative Lawsuit Cases.
In October 2007, Beazer Homes USA, already the subject of an SEC investigation, announced it would restate earnings going back to 1999 after an internal probe found its mortgage unit violated federal regulations. The inquiry also found accounting errors in the Beazer Homes USA's sale-leaseback program. The revisions affected financial statements from 1999 to 2006 and included parts of 2007. Beazer Homes USA said a settlement with regulators may cost as much as $15 million.
Beazer Homes USA said there was evidence that employees of its mortgage unit violated certain U.S. Department of Housing and Urban Development rules related to the agency's down payment assistance program. Beazer Homes USA shares fell to a seven- year low in 2007 as the SEC and the FBI started investigations of its accounting and lending practices. In a statement issued in October 2007, The company could ultimately be liable for losses suffered by mortgage purchasers or HUD, the statement said.
The FBI started its fraud probe after a newspaper reported in March that Beazer Homes USA had sold homes to low-income buyers who couldn't afford them. The loans were based on the assumption the buyer's income would rise, a practice restricted by the Federal Housing Administration.
The Beazer Homes USA scandal has already caused legal problems for the company. In September 2007, Sheet Metal Workers' National Pension Fund filed a lawsuit against Beazer accusing its directors failing to prevent improper business practices, including insider trading and illegal mortgage lending. Beazer was named as a nominal defendant in that derivative lawsuit. It is the opinion of our derivative shareholder lawsuit lawyers that many other shareholders have valid legal claims against Beazer Homes USA.
If you are a Beazer Homes USA shareholder and suffered a financial loss, you have valuable legal rights. Please contact us by filling out or online form or calling 1-800-LAW INFO (1-800-529-4636) for a free consultation with one of our experienced shareholder derivative lawsuit attorneys.