| Company: | First American Corporation |
| Ticker Symbol: | NYSE: FAF |
| Class Period: | Apr-26-06 to Nov-06-07 |
| Date Filed: | June-25-08 |
| Lead Plaintiff Deadline: | Aug-25-08 |
| Court: | Southern District, NY |
| Allegations: |
A class
action lawsuit has been filed against First American Corporation ("First American" or the
"Company") (NYSE: FAF) in the United States District Court for the Southern
District of New York, on behalf of shareholders who purchased the common stock
of the Company between April 26, 2006 and November 6, 2007, inclusive ("Class
Period"), asserting claims under Sections 10(b) and 20(a) of the Securities
Exchange Act of 1934, 15 U.S.C. Sections 78j(b), 78n(a) and 78t(a). Named as
defendants are First American, Parker S. Kennedy, the Company's Chief
Executive Office and Chairman of the Board, and Fred F. McMahon, the Company's
Vice Chairman and Chief Financial Officer. No class has yet been certified in
this action. The case is captioned Berks County Employees' Retirement Fund v.
First American Corporation, et al., and is docketed at S.D.N.Y. No.
08-CIV-5654. The deadline by which to file motions for appointment as lead
plaintiff in the pending lawsuits is August 25, 2008.
The Complaint alleges that, during the Class Period, First American and certain of the Company's officers and directors engaged in an illegal scheme with Washington Mutual, Inc. ("WaMu"), whereby the defendants, through First American's real estate subsidiary, eAppraiseIT LLC, prepared artificially inflated appraisals of homes for use in connection with mortgages issued by WaMu. During the Class Period, in quarterly earnings reports, the Company's management reported increased earnings from appraisal fees and reassured investors that internal controls were adequate. The Complaint alleges that First American's fees from the improper appraisals resulted in the Company overstating its gross profit margins and net income during the Class Period and that throughout the Class Period the defendants made false and misleading statements regarding the Company's internal controls and financial performance.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
The Complaint alleges that, during the Class Period, First American and certain of the Company's officers and directors engaged in an illegal scheme with Washington Mutual, Inc. ("WaMu"), whereby the defendants, through First American's real estate subsidiary, eAppraiseIT LLC, prepared artificially inflated appraisals of homes for use in connection with mortgages issued by WaMu. During the Class Period, in quarterly earnings reports, the Company's management reported increased earnings from appraisal fees and reassured investors that internal controls were adequate. The Complaint alleges that First American's fees from the improper appraisals resulted in the Company overstating its gross profit margins and net income during the Class Period and that throughout the Class Period the defendants made false and misleading statements regarding the Company's internal controls and financial performance.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
