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Impac Mortgage Holdings (NYSE: IMH) Investor Securities Class Action Lawsuit 05/10/2011

  • If you purchased shares of Impac Mortgage Holdings Inc (NYSE: IMH), you might have certain options and should contact the Shareholders Foundation, Inc.

  • To have your information reviewed for options and to receive notifications about this case, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.

Lawsuit Overview

Case Dismissed
Company
Impac Mortgage Holdings
Security
NYSE: IMH

Case Name
Impac Mortgage Holdings Shareholder Class Action Lawsuit 05/10/2011
Type of Lawsuit
Shareholder Class Action
Court of Filing
U.S. District Court for the Central District of California

Class Period Begin
Class Period End
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Summary

May 25, 2011 - Plaintiff filed a notice of voluntary dismissal without prejudice.
May 10, 2011 - An investor in shares of Impac Mortgage Holdings Inc (NYSE: IMH) filed a lawsuit in the U.S. District Court for the Central District of California against Impac Mortgage Holdings Inc over alleged violations of Federal Securities Laws.

According to the complaint the plaintiff brings this class action on behalf of two classes of similarly situated purchasers and/or holders of: (i) Impac Series B Preferred Shares (the “Preferred B Class”); and (ii) Impac Series C Preferred Shares (the “Preferred C Class” and, together with the Preferred B Class, the “Classes”) who have been, and continue to be, deprived of the opportunity to realize fully the benefits of their investment in the Company, and/or who have been otherwise damaged as a result of Defendants’ conduct.

According to the complaint in 2009, Impac Mortgage Holdings Inc filed unauthorized false, invalid amendments to the Company’s corporate charter. The plaintiff says that these amendments purport to eliminate all of the important and valuable terms of two Series of Impac Mortgage Holdings Inc perpetual Preferred stock. Each Preferred has a face value of $25. The Series B Preferred (“Preferred B”) paid quarterly dividends at the rate of 9.375% and the Series C Preferred (“Preferred C”) paid quarterly dividends at the rate of 9.125%. The plaintiff claims that the fraudulently filed amendments make these Preferred stocks (with a total face value of $161.8 million) substantially worthless by eliminating the cumulating of discretionary dividend payments totaling $14.9 million annually and all other valuable provisions protecting the investment of the Preferred holders.

The plaintiff alleges that Impac Mortgage Holdings Inc misrepresented its true financial condition to make it appear to the holders of its Preferred stock (which the Company sought to purchase and retire for 29 and 28.5 cents per share) that IMPM was almost insolvent and would never be able to pay dividends on the Preferred.