Saturday, September 17, 2011

Beazer Homes-US




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Beazer Homes USA (NYSE: BZH) is a Fortune 500 American homebuilding company based in Atlanta, Georgia. The company builds and sells primarily single-family homes in twenty states of the continental United States. It also offers home mortgage services through its subsidiary, Beazer Mortgage Corporation. In 2006 and 2007 Beazer Homes USA won awards across the country in various Parade of Homes events.
2007 investigations and litigation
                        In March 2007, Beazer received a grand jury subpoena from the U.S. Attorney's Office in the United States District Court for the Western District of North Carolina seeking documents related to its mortgage origination services. Media reports have indicated that the company is under federal investigation for alleged mortgage fraud, a charge the company denies. Beazer has said the U.S. Attorney's Office has "made no allegations of wrongdoing by Beazer Homes at this time and that the statements made by an Federal Bureau of Investigation spokesperson about the fact of an investigation and the scope of the investigation were unauthorized, and should not have been made."
                    Beazer reported in a Securities and Exchange Commission (SEC) filing on May 3, 2007 that the SEC has launched an informal investigation of the company. The company said that the inquiry will determine whether any person or entity related to Beazer Homes has violated federal securities laws.
                Beazer also has been named as a defendant in a putative securities class action lawsuit and a putative homeowner class action lawsuit. And it has recently learned a second putative homeowner class action lawsuit has been filed in South Carolina and that it has been named as a nominal defendant in a shareholder derivative complaint filed against some of its current and former executive officers and directors claiming violations and breaches of fiduciary duty related to the company's mortgage origination business. The company said it is cooperating with the U.S. Attorney and the document production request and intends to vigorously defend each of the lawsuits.



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