Investors Say Real Estate Co. Inflated Property Values

Law360, New York (July 22, 2011, 4:01 PM EDT) -- Shareholders of a real estate developer with $750 million in holdings hit the company and its executives with a lawsuit Thursday in Florida federal court, alleging they inflated the value of its holdings even as the state's real estate market was tanking.

A hedge fund manager's report in October 2010 revealed that Jacksonville, Fla.-based The St. Joe Co. had pumped up the value of its real estate holdings even though many of its housing developments were "ghost towns" and its push on beachfront developments had gone...
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