August 21, 2009 - The court granted the defendants' motion to dismiss and dismissed the case with prejudice.
May 18, 2009 - Defendants filed a motion to dismiss.

April 17, 2009 - The lead plaintiff filed an amended consolidated complaint.

March 18, 2009 - The court granted the defendants' motions to dismiss and dismissed the amended complaint with leave to amend.

December 15, 2008 - Defendants filed motions to dismiss.

November 12, 2008 - The lead plaintiff filed another amended consolidated complaint.

September 30, 2008 - The lead plaintiff filed a corrected amended consolidated complaint.

September 29, 2008 - The lead plaintiff filed an amended consolidated complaint.

August 14, 2008 - Lead plaintiff and lead counsel were appointed and all cases were consolidated.

May 16, 2008 - An investor in shares of Downey Financial Corporation (NYSE: DSL) filed a lawsuit in the U.S. District Court for the Central District of California against Downey Financial Corporation over alleged violations of Federal Securities Laws.

According to the complaint the plaintiff charges Downey Financial Corportion and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The complaint alleges that between October 16, 2006 and March 14, 2008 defendants issued materially false and misleading statements regarding Downey Financial Corporation's business and financial results. As a result of defendants’ false statements, Downey Financial Corporation's (NYSE: DSL) stock traded at artificially inflated prices during the Class Period, reaching a high of $74.85 per share in June 2007.

On October 10, 2007, Downey Financial Corporation announced that it expected to incur an operating loss for the 2007 third quarter due to the continued weakening in the housing market. Then, before the market opened on March 17, 2008, Downey Financial Corporation released its monthly selected financial results for the 13 months ended February 29, 2008, which showed a significant increase in non-performing assets to almost 11% of total assets, up from 1.2% in May 2007. Downey Financial Corporation had to restructure debt for many borrowers to avoid having their loans fail. On this news, Downey Financial Corporation's (NYSE: DSL) stock dropped to close at $18.82 per share on March 17, 2008, a decline from $19.14 per share on March 14, 2008, and a decline of 68% from $59 per share on October 9, 2007.

According to the complaint, the true facts, which were known by the defendants but concealed from the investing public during the Class Period, were as follows: (a) defendants’ portfolio of Option ARMs contained millions of dollars worth of impaired and risky securities, many of which were backed by subprime mortgage loans; (b) prior to the Class Period, Downey Financial Corporation had seen Countrywide’s growth and had started to get more aggressive in acquiring loans from brokers such that the loans were extremely risky; (c) defendants failed to properly account for highly leveraged loans such as mortgage securities; (d) Downey Financial Corporation had very little real underwriting, which led to large numbers of bad loans that would cause huge numbers of defaults; and (e) Downey Financial Corporation had not adequately reserved for Option ARM loans, the terms of which provided that during the initial term of the loan borrowers could pay only as much as they desired with any underpayment being added to the loan balance.

Downey Financial Corporation is a savings and loan holding company.