SOURCE: Abraham, Fruchter & Twersky, LLP

April 15, 2008 11:28 ET

Abraham, Fruchter & Twersky, LLP Files Class Action Suit Against iStar Financial Inc.

NEW YORK, NY--(Marketwire - April 15, 2008) - Abraham, Fruchter & Twersky, LLP filed a class action lawsuit in the United States District Court for the Southern District of New York on behalf of purchasers of the common stock of iStar Financial Inc. ("iStar Financial" or the "Company") (NYSE: SFI) pursuant and/or traceable to the Company's secondary public offering on or about December 13, 2007 (the "Secondary Offering").

The complaint charges iStar Financial and certain of its officers and directors with violations of the Securities Act of 1933. iStar Financial operates as a finance company focused on the commercial real estate industry.

According to the complaint, on or about October 9, 2007, iStar Financial filed a Form S-3 Shelf Registration Statement with the Securities and Exchange Commission. On or about December 13, 2007, iStar Financial filed a Prospectus Supplement to the Shelf Registration Statement (the "Registration Statement") with respect to the secondary offering, which forms part of the Registration Statement, and more than 8 million shares of iStar Financial common stock were sold to the public at $28.41 per share, thereby raising more than $227 million.

The complaint alleges that the Registration Statement negligently failed to disclose that the Company was then being negatively impacted by the adverse conditions in the credit markets and was failing to recognize more than $200 million of losses on its corporate loan and debt portfolio.

On February 28, 2008, iStar Financial issued a press release announcing its financial results for the fourth quarter of 2007 and fiscal year 2007, the period ending December 31, 2007. For the fourth quarter, the Company reported a loss of ($78.7 million) or ($0.62) per share. The Company further reported that its fourth quarter financial results were impacted by $134.9 million of charges associated with the "impairment of two credits" and that the Company had increased its loan loss provisions by $113 million. In response to this announcement and subsequent analyst downgrades, the price of iStar Financial stock declined from $22.85 per share on February 27, 2008, to $13.98 per share on March 6, 2008.

Plaintiff seeks to recover damages of all those who purchased the common stock of iStar Financial pursuant and/or traceable to the Company's secondary public offering on or about December 13, 2007. The Plaintiff is represented by Abraham, Fruchter & Twersky, LLP which has extensive experience in securities class action cases, having been ranked among the leading class action law firms in terms of recoveries achieved by a survey of class action law firms conducted by Institutional Shareholder Services.

If you would like to discuss this action or if you have any questions concerning this notice or your rights as a potential class member or lead plaintiff, you may contact: Jack Fruchter or Arthur Chen of Abraham, Fruchter & Twersky, LLP at 212-279-5050, or via e-mail at or, respectively. If you wish to serve as lead plaintiff, you must move the Court no later than June 13, 2008. Any member of the proposed class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed class.

Contact Information

  • Contact:

    Jack Fruchter, Esq.
    Arthur Chen, Esq.
    Abraham, Fruchter & Twersky, LLP
    One Penn Plaza, Suite 2805
    New York, New York 10119
    Tel.: (212) 279-5050