BALTIMORE (CN) - American Capital inflated its share price through false, rosy financial reports, and when the truth came out the share price sank from a high of $98.10 on Feb. 12, 2008 to $6.03 on Nov. 12, shareholders say in a federal class action.
American Capital fka American Capital Strategies "claims to have $17 billion in capital resources under management," the class claims. "The Company also invests in commercial mortgage-backed securities ('CMBS'), commercial collateralized loan obligation ('CCLO') securities and collateralized debt obligation ('CDO') securities, and invests in alternative asset funds managed by itself."
American Capital trades on the NASDAQ. The class period begins on Oct. 30, 2007.
Also sued are American Capital's founder and CEO Malon Wilkus and CFO John Erickson.
The plaintiff class is represented by Dana Whitehead McKee with Brown, Goldstein & Levy.
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