Class Action

Shareholder Alleges Toll Brothers Execs Traded on Inside Info

By classlawblog

According to Courthouse News Service, a shareholder derivative action has been filed in the Court of Chancery of the State of Delaware and alleges the directors of Toll Brothers, Inc. traded shares based on inside information and inflated stock prices through false and misleading statements.

In the complaint, shareholder and plaintiff Milton Pfeiffer, on behalf of nominal defendant Toll Brothers, Inc., alleges Bruce Toll, Robert Toll, Zvi Barzilay, Robert Blank, Joel Rassman, Richard Bramer, Paul Shapiro, Carl Marbach, and Toll Brothers, Inc. “sold stock of Toll Brothers while in possession of material adverse inside information regarding the Company’s deteriorating prospects” and seeks disgorgement of Toll Brothers, Inc.’s “unlawful insider trading proceeds.”  The plaintiff claims the defendants’ misrepresentations caused the price of Toll Brothers, Inc. stock to more than double, rising from $28.50 in December 2004 to over $58.00 in July 2005. Toll Brothers, Inc. designs, builds and markets luxury homes throughout the United States.

Full post as published by ClassLawBlog.com on November 11, 2008 (boomark / email).