Lawsuit Filed On Behalf Of Investors
NEW YORK, NY, February 8, 2005 (MARKETWIRE) - A lawsuit has been filed on behalf of all persons and entities that purchased Bombardier Capital Mortgage Securitization Pass-Through Certificates Series 2000A (the ACertificates@) during the period January 27, 2000 through May 6, 2003 (the ATime Period@). If you purchased the Certificates during the Time Period and wish to participate in the litigation or obtain more information, you may contact the lawyers handling the case by calling toll free (866) 348-7700 or by e-mailing Frank R. Schirripa, Esq. at shareholderrelations@spornlaw.com. Any e-mail should include your name, address, phone number and the number of Certificates you purchased within the Time Period.
The complaint alleges that during the Time Period, Bombardier Capital=s prospectus disseminated in connection with the offering of the Certificates contained materially false and misleading information concerning the manufactured housing loans originated during 1997 through 1999 which were pooled together to serve as collateral for the Certificates. These misstatements which detailed the underwriting and loan origination procedures and represented that they were in compliance with underwriting standards were influential in obtaining a high quality credit rating for the Certificates, and in turn enabled the Certificates to trade at artificially inflated values. Truth be known to the defendants -- but not the investing public -- that all underwriting standards were abandoned and the Company recklessly approved manufactured housing loans to borrowers with shoddy credit and income histories. In late 2002, Fitch rating agency downgraded the Certificates citing a deterioration in the manufactured housing market. The truth was only revealed, in part, as of February 2, 2004, when Fitch downgraded the Certificates explaining Aa combination of underwriting problems and servicing problems have resulted in the highest cumulative losses of any manufactured housing lender.
The claims asserted arise under Sections 10 and 20 of the 1934 Act and New York common law. Named as defendants in the suit are Bombardier Inc., Bombardier Capital Inc., Bombardier Capital Mortgage Securitization Corp., Laurent Beaudoin, Brian Peters, Robert Gillespie, Lawrence F. Assell, Credit Suisse First Boston, JPMorgan Chase, and Prudential Equity Group. The case is pending in the United States District Court for the Southern District of New York. Any subsequently filed cases seeking similar relief and relating to the same facts as alleged herein are expected to be consolidated into this case.
Under recent amendments to the securities laws, if you purchased Bombardier Certificates during the Time Period, you may seek to be appointed as the person or group of persons which litigates the case on behalf of the other similarly situated Certificate holders. The deadline to seek such status expires April 11, 2005.
If you would like to further discuss your rights, you may call collect or otherwise contact the undersigned, who will be pleased to assist:
CONTACT:
Jay P. Saltzman, Esq.
Ashley Kim, Esq.
Schoengold & Sporn, P.C.
19 Fulton Street, Suite 406
New York, New York 10038
Tel: (212) 964-0046
Fax: (212) 267-8137
Toll Free: (866) 348-7700
E-Mail: shareholderrelations@spornlaw.com
Website: www.spornlaw.com
SOURCE: : Frank R. Schirripa, Esq. Attorney-at-Law
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