SOURCE: Stull, Stull & Brody

June 16, 2008 18:54 ET

Stull, Stull & Brody Announces Class Action on Behalf of Shareholders of IndyMac Bancorp, Inc.

NEW YORK, NY--(Marketwire - June 16, 2008) - Attorney Advertising. Notice is hereby given that a class action has been commenced in the United States District Court for the Central District of California on behalf of purchasers of the common stock of IndyMac Bancorp, Inc. ("IndyMac" or the "Company") (NYSE: IMB) between August 16, 2007 and May 12, 2008 (the "Class Period").

Stull, Stull & Brody has substantial experience representing employees who suffered losses from purchases of their employer's stock in their 401(k) plans. If you bought IndyMac stock through your IndyMac retirement account and have information or would like to learn more about these claims, please contact us.

The complaint charges IndyMac and certain of its officers and directors with violations of the Securities Exchange Act of 1934. IndyMac is the holding company for IndyMac Bank, F.S.B., a hybrid thrift/mortgage bank. The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company's business and financial results. Specifically, defendants downplayed and concealed IndyMac's growing exposure to non-performing assets, particularly loans in its pay-option adjustable-rate mortgages ("Option ARM") and homebuilder construction portfolios, and made numerous positive representations regarding the Company's capital position to alleviate investors' fears concerning the Company's capital erosion. As a result of defendants' false statements, IndyMac stock traded at artificially inflated prices during the Class Period, reaching a Class Period high of $24.55 per share in October 2007.

Then, on May 12, 2008, IndyMac announced its first quarter 2008 financial results, including a net loss of $184.2 million, or $2.27 per share, compared with net earnings of $52.4 million, or $0.70 per share, in the first quarter of 2007. On this news, IndyMac's stock dropped to close at $2.32 per share -- a two-day decline of $1.11 per share, or 32%, and a decline of 91% from $24.55 per share on October 2, 2007.

According to the complaint, the true facts, which were known by defendants but concealed from the investing public during the Class Period, were as follows: (a) the Company was not adequately reserving for its losses on mortgage-related assets in violation of generally accepted accounting principles; (b) the Company had far greater exposure to anticipated losses and defaults concerning its book of business related to its home builder and Option ARM portfolios than it had previously disclosed; (c) the Company's capital base was not adequate enough to withstand the significant deterioration in the credit and real estate markets and could jeopardize the Company's status as "well capitalized"; (d) IndyMac had not adequately reserved for Option ARMs; and (e) given the Company's exposure to increased volatility in the credit and real estate markets, the Company had no reasonable basis to make projections about its earnings.

Plaintiff seeks to recover damages on behalf of all those who purchased or otherwise acquired IndyMac's common stock during the Class Period, which is between August 16, 2007 and May 12, 2008. If you purchased or otherwise acquired IndyMac's common stock during the Class Period, and either lost money on the transaction or still hold the securities, you may wish to join in the action to serve as lead plaintiff. If you purchased IndyMac's common stock during the Class Period, you may request that the Court appoint you as lead plaintiff no later than sixty days from June 11, 2008.

A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Stull, Stull & Brody, or other counsel of your choice, to serve as your counsel in this action. Stull, Stull & Brody has litigated many class actions for violations of securities laws in federal courts over the past 30 years and has obtained court approval of substantial settlements on numerous occasions. Stull, Stull & Brody maintains offices in New York and Los Angeles.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Tzivia Brody, Esq. at Stull, Stull & Brody by e-mail at, by calling toll-free 1-800-337-4983, by fax to 1-212-490-2022, or by writing to Stull, Stull & Brody, 6 East 45th Street, New York, NY 10017. You can also visit our website at

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