NEW YORK, Dec. 13, 2010 (GLOBE NEWSWIRE) -- Shareholders of The St. Joe Company ("St. Joe" or the "Company") (NYSE:JOE) are reminded of the securities class action lawsuit filed against St. Joe and certain of its officers. The class action is on behalf of a class of all persons or entities who purchased or otherwise acquired St. Joe securities, including purchasers and sellers of options during the period from February 19, 2008 through October 12, 2010, inclusive (the "Class Period"). The Complaint alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
St. Joe, one of the largest real estate development companies in Florida, is engaged in town and resort development, commercial and industrial development and rural land sales. The Complaint alleges that throughout the Class Period, defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, defendants made false and/or misleading statements and/or failed to disclose that: (1) as the Florida real estate market was in decline, St. Joe was failing to take adequate and required impairments and accounting write-downs on many of its Florida based property developments; (2) as a result, St. Joe's financial statements materially overvalued the Company's Florida based property developments; (3) the Company's financial statements were not prepared in accordance with Generally Accepted Accounting Principles; (4) the Company lacked adequate internal and financial controls; and (5) as a result of the foregoing, the Company's financial statements were materially false and misleading at all relevant times.
On October 13, 2010, David Einhorn ("Einhorn") of Greenlight Capital Inc. detailed the need of the Company to take "substantial impairments" and accounting writedowns on many of its properties, and warned that further building by the Company would drive the stock price to zero. Einhorn's presentation noted that St. Joe's "development plans have fallen flat, leaving it with 'ghost towns' and inevitable writedowns." For example, Einhorn said he would "generously" place a value of $17.8 million on the remaining residential development at St. Joe's Windmark Beach property, while the Company is carrying the property at $164.5 million on its balance sheet. Einhorn also stated that the Company "was 'stuck' after making an aggressive bet on beachfront developments that have gone nowhere, and that it was overvaluing the real estate holdings on its books."
On this news, shares of the Company's stock declined $2.38 per share, or 9.7% on October 13, 2010. The next trading day, the Company's shares declined an additional $2.42 per share, or 10.9%, to close at $19.74 per share. Cumulatively over these two days, St. Joe's shares declined a total of $4.80 per share, or over 19.5%.
If you are a shareholder who purchased St. Joe securities during the Class Period, you have until January 3, 2011 to ask the Court to appoint you as lead plaintiff for the class. A copy of the complaint can be obtained at . To discuss this action, contact Fei-Lu Qian at flqian@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
The Pomerantz Firm, with offices in New York, Chicago and Washington, D.C., is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See .
CONTACT: Pomerantz Haudek Grossman & Gross LLP Fei-Lu Qian 888-476-6529 (ext. 241) flqian@pomlaw.com