Securitites Litigation: Hovnanian Enterprises, Inc.

In re: Hovnanian Enterprises, Inc. Securities Litigation
USDC New Jersey
Credit Crunch
Acquistion

Company background

Litigation background

Lead plaintiffs

Background

The Company, Chief Executive Officer and President Ara K. Hovnanian, Executive Vice President and Chief Financial Officer J. Larry Sorsby and a former Division Vice-President have been named as defendants in a purported class action. The original complaint was filed on September 14, 2007 in the United States District Court for the Central District of California, captioned Herbert Mankofsky v. J. Larry Sorsby, and named only Mr. Sorsby as a defendant. On January 31, 2008, the court appointed Herbert Mankofsky as Lead Plaintiff. On February 19, 2008, the action was transferred to the United States District Court for the District of New Jersey. On March 10, 2008, plaintiff filed an amended complaint, captioned In re Hovnanian Enterprises, Inc. Securities Litigation, alleging among other things, that the defendants made false and misleading statements regarding the Company's business and future prospects with respect to the Companys acquisition and operation of First Home Builders of Florida in violation of federal securities laws.

Complaint