<p align= justify >The judge ordered related cases to be consolidated on November 9, 2007, at the same time appointing lead plaintiff and approving selection of lead counsel. The First Consolidated complaint was filed January 8, 2008, which defendants moved to have dismissed. Before ruling on the motion, plaintiffs amended their complaint and re-filed on June 20, 2008.</p> <p align= justify > </p>
<p align= justify >According to a press release dated August 18, 2007, the complaint charges Impac and its top executive officers with violating the federal securities laws by issuing a series of materially false and misleading press releases and filings with the SEC concerning Impac’s financial results and business prospects.</p>
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<p align= justify >Specifically, the complaint alleges that Impac’s representations concerning its Alt-A loans are alleged to be patently untrue, with the Alt-A loans actually being sold to less creditworthy borrowers, so that the loan portfolio was experiencing the same risks and discounts in securitization as sub-prime mortgages. At the same time, Impac overstated its financial results by failing to write down the value of its loan portfolio, thus falsely inflating the prices investors paid for Impac securities.</p>