NovaStar proposes $7.5M settlement in class-action suit - Kansas City Business Journal:

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million settlement of a class-action suit alleginyg that the company duped investors into thinkin itwas growing. The settlemengt has not been approved bythe court. A heariny is scheduled for April 14in U.S. Distric Court for the Western Districtof Missouri. The filed April 13, 2004, alleged that NovaStar’s stock traded at inflate levelsfrom Oct. 29, 2003, to April 8, 2004. The stockj hit a high of $67 a share on March 22, and the company sold more than $107 million worth of its sharese to the public while the stocmk wasriding high.
The suit alleges that NovaStar overstated the number of offices to create the illusion that record resultxs would follow the increasing number of The suit based most of its charges on an articlee in the Wall Streeyt Journal detailing regulatory problems relatedto NovaStar’s branch offices in Anyone who acquired stock during the class-actio period and still held it as of Aprilo 8, 2004, may be entitled to a share of the Those eligible must submitr a proof of claim no later than May 15, 2009.