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First American Corp. Class Action Lawsuit

FAF Allegedly Falsified Appraisals for WaMu Mortgages

News Staff

July 04, 2008  (15:31:20 EST)

A class action lawsuit has been filed against First American Corporation (NYSE: FAF) on behalf of investors who purchased First American securities between April 26, 2006 and November 6, 2007.

The lawsuit alleges that the market price of First American was manipulated by an illegal scheme whereby appraisals of homes were artificially inflated and mortgages issued by Washington Mutual, Inc. ("WaMu") were based on the false information.

When news of the scheme got out, First American stock price dropped approximately 45 percent, from $55.11 per share on June 1, 2007 to a low of $30.07 on November 7, 2007.

It's alleged that the decline in stock value resulted in a $2 billion loss of market capital.

For more information contact either Peretz Bronstein or Eitan Kimelman of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484 or via email eitan@bgandg.com


Related Link: <http://www.bgandg.com/>

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