This is a securities class action lawsuit against iStar Financial and certain officers and directors alleging that on December 13, 2007, iStar Financial completed a secondary offering raising more than $227 million.
The class action complaint alleges that the Registration Statement negligently failed to disclose that iStar Financial was then being negatively impacted by the adverse conditions in the credit markets and was failing to recognize more than $200 million of losses on its corporate loan and debt portfolio.
On February 28, 2008, iStar Financial issued a press release announcing its financial results for the fourth quarter of 2007 and fiscal year 2007, the period ending December 31, 2007. For the fourth quarter, iStar Financial reported a loss of ($78.7 million) or ($0.62) per share. iStar Financial further reported that its fourth quarter financial results were impacted by $134.9 million of charges associated with the "impairment of two credits" and that iStar Financial had increased its loan loss provisions by $113 million.
In response to this announcement and subsequent analyst downgrades, the price of iStar Financial stock declined from $22.85 per share on February 27, 2008, to $13.98 per share on March 6, 2008.
Name (Stock Symbol)
iStar Financial Inc. (SFI)
Star Financial Inc. operates as a finance company focusing on the commercial real estate industry.
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