LOS ANGELES (CN) – Top dogs in the Ryland Group – home builders and mortgage lenders – made tens of millions of dollars by pushing subprime mortgages to unqualified borrowers, misrepresented their management practices, and devastated the company when the predictable wave of defaults followed, shareholders say in a Superior Court class action.
The defendant directors are accused of making more than $81 million through inside sales of Ryland stock. The Ryland Group includes Ryland Homes, Ryland Mortgage, Ryland Title and Escrow, and Ryland Insurance.
The lead plaintiff is the City of Miami Police Relief and Pension Fund. It seeks punitive damages for inside selling, gross and reckless mismanagement, breach of duties, unjust enrichment, and corporate waste.
Lead counsel is Sabrina Kim with Milberg LLP.