United States District Court Judge Virginia A. Phillips dismissed the case on issue of proving damages. The United States Ninth District Court of Appeals has reversed that decision and reinstated the case.
Update: The following are important recent developments and documents for each of the Homebuilders class action lawsuits:
On December 21, 2009, McCuneWright, LLP filed a First Amended Complaint superseding the original September 3, 2009 class action lawsuits filed against eight national homebuilders. The lawsuit alleges homebuilders that sold new homes in 2005 and 2006 to purchasers who put 10% or more down payment, failed to inform these purchasers of the large number of subprime loans used to sell homes at inflated prices in the same development. The lawsuit further alleges that these homebuilders not only knew about the subprime loans, the homebuilder actually funded many of the subprime loans through mortgage companies that the they set up to fund the loans used to purchase the homes they were selling. The lawsuit also alleges that as a result of these subprime loans, that homes in these developments were sold at inflated prices, and that the high rate of foreclosures and short-sales from defaulting subprime buyers has resulted in devastating reduction in home values. The case is presently in litigation.
We would like to hear from you if you believe you are one of our prospective class members. If you are interested in having your situation included in the lawsuit, please click here and fill out the short questionnaire, and someone from McCuneWright will get back to you shortly. If you would prefer to leave a telephone message, please call 909.557.1250.