TOA Tousa

RADNOR, Pa., Jan. 5 /PRNewswire/ -- The following statement was issued today by the law firm of Schiffrin Barroway Topaz & Kessler, LLP: Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Southern District of Florida on behalf of all securities purchasers of Technical Olympic USA, Inc. (NYSE:TOA) ("TOUSA" or the "Company") from August 1, 2005 through November 6, 2006, inclusive (the "Class Period"). If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin Barroway Topaz & Kessler, LLP (Darren J. Check, Esq. or Richard A. Maniskas, Esq.) toll-free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at . The Complaint charges TOUSA and certain of its officers and directors with violations of the Securities Exchange Act of 1934. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: The complaint alleges that, throughout the Class Period, defendants failed to disclose: (1) that the Company's debt related to its joint venture involving Transeastern Properties, Inc. (the "Transeastern Joint Venture") was not "non-recourse" debt; (2) as such, the Company would be liable for full repayment of its Transeastern Joint Venture debt upon the occurrence of certain triggering events, including a declaration of bankruptcy by the joint venture; (3) that, due to a severe slowdown in the housing market, the Transeastern Joint Venture was experiencing significant losses and would be unable to meet its projections; and (4) that, as a consequence of the foregoing, the Company would likely lose its investment in the Transeastern Joint Venture, including any loans or receivables owed to it. On June 5, 2006, before the market opened, TOUSA announced that the Company's second quarter net sales had been negatively impacted due to decreased demand. On this news, shares of TOUSA stock fell $1.61 per share, or 8.9 percent, to close, on June 5, 2006, at $16.48 per share. TOUSA shares continued to fall the next day, shedding an additional $1.30 per share, or 7.9 percent, to close, on June 6, 2006, at $15.18 per share. On September 27, 2006, while the market was open, TOUSA announced that the Company had met with the lenders to the Transeastern Joint Venture to update them on the financial position of the joint venture and the Florida housing market conditions. TOUSA also reported that the Florida housing market had severely slowed, which "negatively impacted the joint venture's ability to meet its projections." On this news, shares of TOUSA's stock sank $1.47, or 12.1 percent, to close, on September 27, 2006, at $10.71, on heavy trading volume. On November 6, 2006, after the market closed, the Company shocked investors when it revealed in a Form 8-K filed with the SEC that a declaration of bankruptcy by the Transeastern Joint Venture would trigger the Company's obligation to repay its debts related to the joint venture in full. On this news, shares of the Company's stock plunged an additional $3.79, or 35.1 percent, to close, on November 7, 2006, at $7.00, on unusually heavy trading volume. Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin Barroway Topaz & Kessler which prosecutes class actions in both state and federal courts throughout the country. Schiffrin Barroway Topaz & Kessler is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. For more information about Schiffrin Barroway Topaz & Kessler or to sign up to participate in this action online, please visit http://www.sbtklaw.com/. If you are a member of the class described above, you may, not later than February 12, 2007, move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Schiffrin Barroway Topaz & Kessler or other counsel of your choice, to serve as your counsel in this action. CONTACT: Schiffrin Barroway Topaz & Kessler, LLP Darren J. Check, Esq. Richard A. Maniskas, Esq. 280 King of Prussia Road Radnor, PA 19087 1-888-299-7706 (toll-free) or 1-610-667-7706 Or by e-mail at DATASOURCE: Schiffrin Barroway Topaz & Kessler, LLP CONTACT: Darren J. Check, Esq. or Richard A. Maniskas, Esq. of Schiffrin Barroway Topaz & Kessler, LLP, +1-888-299-7706, or +1-610-667-7706, or Web site: http://www.sbtklaw.com/

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