Insider Selling/Undisclosed Related Party Transactions
Product or Service
This is a securities fraud class action lawsuit against Toll Brothers Inc. and certain officers and directors.
Toll Brothers is a home builder which specializes in building large, expensive homes.
The class action complaint alleges that Toll Brothers made a series of false and misleading statements indicating that Toll Brothers' business model, which was based on developing expensive homes for a niche market of high-end buyers, was unique and thus immune from the adverse impact of rising interest rates and other negative macro-economic factors that appeared to be negatively impacting the home-building industry during 2004 and 2005. As the truth was revealed to investors, including the deteriorating state of demand for Toll Brothers' homes, its constrained and shrinking number of active selling communities, the insufficient inventory of lots for Toll Brothers to achieve 20% net income growth in 2006 and 2007, and the actual adverse impact of rising interest rates and negative macro-economic trends on traffic to Toll Brothers communities and demand for its homes and thus its future prospects, Toll Brothers stock plummeted, falling from its $58.25 per share Class Period high in July 2005 to as low as $33.72 per share on November 9, 2005, a 42% drop.
Name (Stock Symbol)
Toll Brothers, Inc. (TOL)
Toll Brothers, Inc. constructs single-family detached and attached homes in luxury residential communities in the United States
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