SOURCE: Brower Piven, A Professional Corporation

July 15, 2008 17:49 ET

Brower Piven Encourages Investors Who Have Losses in Excess of $100,000 From Investment in First American Corporation to Inquire About the Lead Plaintiff Position in Securities Fraud Class Action Lawsuit Before the August 25, 2008 Lead Plaintiff Deadline

BALTIMORE, MD--(Marketwire - July 15, 2008) - Brower Piven, A Professional Corporation announces that a class action lawsuit has been commenced in the United States District Court for the District of Southern District of New York on behalf of purchasers of the common stock of First American Corporation ("First American" or the "Company") (NYSE: FAF) between April 26, 2006 and November 6, 2007, inclusive (the "Class Period").

No class has yet been certified in the above action. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff no later than August 25, 2008 and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement and how much of a settlement to accept for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. You may contact Brower Piven (through hoffman@browerpiven.com or 410/332-0030) to answer questions you may have regarding the lead plaintiff process.

The complaint charges First American and certain of its officers and directors with violations under the Securities Exchange Act of 1934 due to their withholding material facts from the investing public. The complaint alleges that throughout the Class Period, defendants mislead investors through the Company's real estate appraisal subsidiary, eAppraiseIT, which knowingly (to defendants) provided inflated appraisals to Washington Mutual, Inc. that enabled WaMu to engage in numerous real estate mortgage transactions that would have been untenable had the property at issue been correctly appraised. The complaint further alleges that these improper appraisal practices during the Class Period rendered the Company's statements about its compliance with ethical and legal guidelines and the adequacy of the Company's internal controls materially false and misleading. The complaint further states that defendants' ongoing omissions of material fact related to the Company's home appraisal business caused reported financial information, including revenues associated with home appraisal, to be materially overstated throughout the Class Period, caused the Company's loan loss reserves, provisions for doubtful account and contingent liabilities to be materially understated during the Class Period, and caused Defendants to report financial results that were in violation of GAAP. Upon disclosure of First American's wrongdoing, First American's stock price has declined significantly.

If you have suffered a net loss for all transactions in First American common stock during the Class Period, you may obtain additional information about this lawsuit and your ability to become a lead plaintiff by contacting Brower Piven at www.browerpiven.com, by email at hoffman@browerpiven.com, by calling 410-332-0030, or at Brower Piven, A Professional Corporation, The World Trade Center-Baltimore, 401 East Pratt Street, Suite 2525, Baltimore, Maryland 21202. Attorneys at Brower Piven have combined experience litigating securities and class action cases of over 40 years. If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need not take any action at this time to be a member of the class.

Contact Information

  • CONTACT:
    Charles J. Piven
    Brower Piven, A Professional Corporation
    Baltimore, Maryland
    410/332-0030
    Email Contact