Shareholder Suit Against Ex-HomeBanc Execs Tossed

Law360, New York (April 14, 2010, 1:35 PM EDT) -- A federal judge has dismissed a putative class action accusing two former HomeBanc Mortgage Corp. executives of fraudulently painting an overly rosy picture of the now-defunct mortgage lender's financial health and inflating stock prices before the company's collapse.

Judge Timothy C. Batten Sr. of the the U.S. District Court for the Northern District of Georgia dismissed the consolidated class action complaint Tuesday, ruling that the plaintiffs failed to prove that former HomeBanc CEOs Patrick S. Flood and Kevin D. Race had committed fraud.

Lead plaintiff William...
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