This excerpt taken from the LEND 8-K filed Mar 20, 2007.
ACCREDITED ANNOUNCES CORPORATE DEVELOPMENTS
SAN DIEGO, March 19, 2007 Accredited Home Lenders Holding Co. (NASDAQ: LEND) (Accredited or Company) announced that the Company has received notice from the NASDAQ staff that the Companys common stock is subject to delisting from The NASDAQ Stock Market. NASDAQ issued the notice, as required by its Marketplace Rules, in connection with the Companys failure to file its 2006 Annual Report on Form 10-K prior to expiration of the 12b-25 period on March 15, 2006. Accredited intends to request a hearing before the NASDAQ Listing Qualifications Panel (Panel) to appeal the determination. The appeal will stay the delisting of the Companys stock from The NASDAQ Stock Market pending the Panels decision. In the meantime, the Company is working to file its Form 10-K as soon as possible.
In addition, Accredited announced that a class action lawsuit was filed against the Company and certain of its officers and directors. The lawsuit generally alleges that, between November 1, 2005 and March 12, 2007, Accredited issued materially false and misleading statements regarding the Companys business and financial results causing the Companys stock to trade at artificially inflated prices. The Company believes that the lawsuit has no merit and intends to defend the case vigorously.
As announced previously, Accredited continues to explore various strategic options, including raising additional capital to enhance liquidity and provide the Company with the flexibility to retain or sell originated loans based on an assessment of the best overall return. Accredited is currently in discussions regarding a possible financing arrangement with a third party that would provide additional liquidity. The Company has retained a financial advisor in this endeavor. There can be no assurance that the Company will be successful in completing a financing arrangement or in obtaining the additional liquidity.
This news release does not constitute an offer to sell or the solicitation of an offer to buy securities. Any securities offered by the Company will not be or have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.