Finkelstein, Thompson, and Loughran Announces Investigation of GMH
Communities Trust
WASHINGTON, April 10 -- The law firm of Finkelstein,
Thompson & Loughran announces that a lawsuit seeking class action status
has been filed in the United States District Court for the Eastern District
of Pennsylvania on behalf of persons who purchased or otherwise acquired
publicly traded securities of GMH Communities Trust ("GMH" or the
"Company") (NYSE: GCT) during the period between October 28, 2004 and March
10, 2006, inclusive (the "Class Period"). Finkelstein, Thompson & Loughran
is investigating similar claims at this time and welcomes inquiries from
potential class members concerning their rights and interests in this
matter.
The lawsuit alleges that GMH violated federal securities laws by
issuing false or misleading public statements. Specifically, the lawsuit
alleges that Defendants (1) disseminated false and misleading financial
statements in a scheme to inflate the earnings of the Company and (2)
issued dividends in violation of loan covenants. The lawsuit further
alleges that these misrepresentations drove the stock price higher,
allowing GMH to sell a secondary offering in October 2005 at an
artificially inflated price.
In completing its year-end closing of its 2005 financial statements,
GMH's Chief Financial Officer wrote to the Audit Committee of the Company's
board indicating certain problems existed at GMH, including the "tone at
the top" from the Company's executive management. The Audit Committee
launched an internal investigation revealing (1) the Company had material
weaknesses in internal controls; (2) key GMH executives had exerted
pressure on the accounting function; and (3) GMH's financial statements for
current and prior periods needed to be adjusted.
On this news, shares fell from a $16.83 close on March 10th to a $12.90
close on March 13 -- a drop of 23%.
If you are a member of the class, you may, no later than June 2, 2006,
request that the Court appoint you as lead plaintiff of the class. A lead
plaintiff is a class member appointed by the Court to direct the litigation
on behalf of the class. Although a class member need not be appointed as a
lead plaintiff to receive a proportionate share of any proceeds of the
litigation, lead plaintiffs make important decisions that could affect the
prosecution of the class claims, including decisions concerning settlement.
The securities laws create a rebuttable presumption that the plaintiff with
the largest financial interest in the litigation is the most adequate to
serve as a lead plaintiff.
With offices in Washington, DC and San Francisco, CA, Finkelstein,
Thompson & Loughran has spent almost three decades delivering outstanding
representation to institutional and individual clients in connection with
securities and other finance-related litigation, and has been appointed as
lead or co-lead counsel in dozens of shareholder class actions. Indeed, in
the past ten years, the firm has served in leadership roles in cases that
have recovered over $1 billion for investors and consumers.
If you have any questions concerning this press release or your rights
or interests, please contact Finkelstein, Thompson & Loughran's Washington,
DC office at (877) 337-1050, or by email at contact@ftllaw.com.
