HomeBanc Hit With Securities Class Action

Law360 (December 3, 2007, 12:00 AM EST) -- A purchaser of HomeBanc Mortgage Corp.'s series A stock has alleged that, in the run-up to its offering, the bankrupt lender failed to disclose numerous adverse business circumstances as well as its plans to unload its high-quality loans in favor of subprime ones.

The complaint was filed on behalf of a proposed class of shareholders Friday in the U.S. District Court for the Southern District of New York, charging HomeBanc and several current and former executives and directors with securities fraud.

The complaint also names J.P....
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