DALLAS, May 5, 2006 (PRIMEZONE) -- There are only 12 more days until the May 16, 2006 deadline to file for appointment of Lead Plaintiff in the pending class action lawsuit against PHH Corp. ("PHH" or "the Company") (NYSE:PHH). If you purchased the securities of PHH between May 12, 2005 to March 1, 2006, inclusive (the "Class Period"), you may contact Baron & Budd, P.C. to discuss your legal options.
On March 17, 2006, the first complaint was filed against PHH alleging violations of Federal securities laws. The Complaint alleges that defendants' Class Period statements, made in press releases and SEC filings, were materially false and misleading for the following reasons: (i) the Company materially overstated its deferred tax assets, by tens of millions of dollars; (ii) the Company's reported net income was materially overstated; (iii) the Company's internal controls over financial reporting had fundamental weaknesses, were not effective and negatively affected the Company's ability to record, process, summarize and report financial data; and (iv) as a result of the foregoing, the Company's reported results were materially inflated and deceived investors.
On March 1, 2006, the Company issued a press release revealing that the Company's reported results were overstated, for the reasons discussed above, and that an ongoing accounting review would prevent it from timely filing with the SEC its annual report on Form 10-K. The Company also announced that it had replaced its Chief Financial Officer, defendant Neil J. Cashen.
In response to this announcement, the price of PHH common stock sank from $28.73 per share on March 1, 2006 to $26 per share on March 2, 2006, on unusually heavy trading volume.
If you are a member of this class and would like to take action in this suit, you may contact Baron & Budd, P.C. at the phone number below. You may also visit Baron & Budd online (http://www.securitiesactions.com). Information on your legal rights can be obtained by contacting the law firm of Baron & Budd, P.C.
About Baron & Budd, P.C.
Since 1977, the law firm of Baron & Budd, P.C. has championed the rights of people and communities harmed by corporate misconduct. With over 80 attorneys and offices in Texas, Illinois, Ohio, Louisiana, and New York, Baron & Budd enjoys a national reputation as a leader of the plaintiff's bar. The firm represents individuals with mesothelioma and other diseases caused by asbestos; leukemia and lymphoma caused by benzene; and injuries caused by other toxic substances and pharmaceuticals. The firm also represents water authorities seeking clean-up costs for drinking water contamination; securities investors defrauded by corporate wrongdoing; and consumers. For more information about Baron & Budd, call 1-800-222-2766 or visit www.baronandbudd.com. For more information about Baron & Budd's securities litigation practice, please visit www.securitiesactions.com.
More information on this and other class actions can be found on the Class Action Newsline at http://www.primezone.com/ca.