On February 23, 2007, a class action lawsuit was filed in the United States District Court for the Western District of Missouri against NovaStar Financial, Inc.. The complaint alleges violations of federal securities laws, Sections 10(b) and (20)a of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material misrepresentations to the market which had the effect of artificially inflating the market price. The class period is from May 4, 2006 - February 20, 2007.

On February 20, 2007, NovaStar Financial, Inc. shocked the market by announcing disappointing fourth quarter and year-end 2006 results and further warned that NovaStar expected to earn little or no taxable income in the next five years. On the news of this announcement, NovaStar’s stock dropped approximately 42% on heavy trading volume.

Plaintiff seeks to recover damages on behalf of the Class. If you acquired the securities of NovaStar Financial, Inc., you may move the Court no later than Tuesday, April 24, 2007, to serve as a lead plaintiff for the Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.

Cauley Bowman is a national law firm that represents investors and consumers in class action and corporate governance litigation. It is one of the country’s premiere firms in the area of securities fraud, with in-house finance and forensic accounting specialists and extensive trial experience.

If you have any questions about how you may be able to recover for your losses, whether you purchased stock, bonds, preferred stock or options, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you are encouraged to call or e-mail the Firm or visit the Firm’s website at www.cauleybowman.com.

Contact:

S. Gene Cauley,
CAULEY BOWMAN CARNEY & WILLIAMS, PLLC
11311 Arcade Drive, Suite 200
P.O. Box 25438
Little Rock, Arkansas 72221-5438
501-312-8500
1-888-551-9944

Source: Cauley Bowman Carney & Williams, PLLC

This entry was posted on Wednesday, February 28th, 2007 at 11:18 pm and is filed under Real Estate. Tags: Arkansas Consumer finance Kansas Little Rock Missouri United States . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.