Subprime Lending

Accredited Faces NASDAQ Delisting, Claims of Securities Fraud 

Accredited Home Lenders Holding Co. (NASDAQ:LEND) said early Monday that its stock is subject to delisting from the NASDAQ due to the company’s failure to file its 2006 Annual Report on Form 10-K prior to expiration of the 12b-25 period on March 15, 2006. Accredited said it intends to request a hearing before the NASDAQ Listing Qualifications Panel to appeal the determination, which will stay the delisting while the company works to file its Form 10-K. In addition, Accredited revealed that a class action lawsuit was filed against the company and certain of its officers and directors. Like many similar suits facing other subprime lenders, the lawsuit generally alleges that Accredited issued “materially false and misleading” statements that caused the company’s stock to trade at artificially inflated prices.