Capstead Mortgage Corp. has been targeted in another class action accusing it of securities fraud.
The latest, filed in U.S. District Court for the Northern District of Texas, Northern Division, says Capstead and its senior officers "materially inflated" the market price of Capstead's stock from April 17, 1997, to June 25 of this year.
Capstead took a $300 million charge in conjunction with its second- quarter earnings in June, related to its mortgage servicing portfolio.
The company recorded a $4.47 per share loss for the quarter, more than all the net income reported during the suit's class period, said a written statement from plaintiff's lawyers Berger & Montague. Capstead's stock has fallen more than 83% from its April 1997 high of $27.81.
The company was trading at $4.50 midday Thursday. More than 10 suits have been filed against the lender since its second-quarter announcement.