Jul 26, 2008

Lawsuits filed against parent company of HuHonua

Numerous lawsuits have been filed in 2008 claiming that Municipal Mortgage & Equity LLC management intentionally misrepresented the value of the company's assets and its profits. As a result, the stock price was artificially inflated and subsequently declined sharply. Named in the lawsuit are most of the major corporate officers, including the audit committee.

Also known as MuniMae, the company was delisted from the New York Stock Exchange in February 2008, former trading symbol: MMAB. Shares can be purchased via the "pink sheets". Daily Record, The (Baltimore, MD), May 06, 2008

According to a press release dated January 31, 2008, the complaint charges that MMA and certain of its present and former officers, directors, and control persons violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by issuing materially false and misleading statements pertaining to MMA's business prospects, financial condition, and financial performance.

full story here

Lawsuits have the disadvantage of taking corporate officers' time away from running the business in order to defend themselves; they take corporate funds to defend them; they lower market confidence in the company and make it harder to obtain business credit and loans for operations; and they can result in the sale of corporate assets if penalized.

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  • HuHonua, 8/13/08
  • Jay Ignacio, Helco 8/14/08
  • Tues 8/5/08 7pm Susan's
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  • Wed 7/16/08 7pm Susan's

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Local environmental activist.