BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith reminds investors of the upcoming May 15, 2017 deadline to file a lead plaintiff motion in the class action filed on behalf of a class of investors who purchased or otherwise acquired Desarrolladora Homex S.A.B. de C.V. (“Homex” or the “Company”) (formerly NYSE: HXM; formerly OTCMKTS: DHOXQ; formerly OTCMKTS: DHOXY) American Depositary Shares (“ADRs”) between April 30, 2012 and May 5, 2016, inclusive (the “Class Period”). Homex investors have until May 15, 2017 to file a lead plaintiff motion.
On March 3, 2017, Homex resolved charges by the U.S. Securities and Exchange Commission ("SEC") for allegedly reporting $3.3 billion in deceitful sales revenue to boost its revenues in financial statements between 2010 and 2013. The SEC's complaint alleges that during a three-year period, Homex exaggerated its revenue by 355%, or about $3.3 billion by reporting fabricated sales of more than 100,000 homes, thereby four times inflating the numbers of homes actually sold. The SEC's complaint also alleges that "Homex's Headquarters Financial Reporting Personnel intentionally and knowingly uploaded false information into the Company's internal reporting and accounting systems in order to perpetrate the fictitious revenue scheme."
The complaint filed in this lawsuit alleges that throughout the Class Period, defendants made materially false and misleading statements and failed to disclose that: (1) between 2010 and 2013, Homex overstated its revenue by 355% or roughly $3.3 billion by reporting fictitious sales of more than 100,000 homes; (2) between 2010 and 2013, Homex overstated the number of units it sold by over 100,000 units or 317% of actual units sold; (3) Homex and certain of its Headquarters Financial Reporting Personnel knowingly and intentionally engaged in a scheme to materially overstate Homex's revenues, homes sold, and other related financial items; and (4) consequently, defendants' statements about Homex's business, operations and prospects were materially false and misleading and/or lacked a reasonable bases at all relevant times.
If you purchased Homex ADRs, you may move the Court no later than May 15, 2017 to request appointment as lead plaintiff. To be a member of the class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to email@example.com, or visit our website at http://www.howardsmithlaw.com.
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