Shareholder Investigation of Beazer Homes USA, Inc.
Beazer Homes USA, Inc. (BZH) Improperly Valued Land Held for Future Developments
According to the complaint for alleged violations of the Securities Exchange Act of 1934 between August 1, 2014 and May 2, 2019, during the class period, Beazer Homes USA, Inc. (BZH) touted the value of land held for future developments. When the value declined, Beazer Homes asserted it was because it had “activated multiple parcels [previously classified as land held for future developments] for homebuilding activities” to improve capital efficiency. However, on May 2, 2019, Beazer Homes announced its financial and operating results for the second quarter of 2019, including a net loss from continuing operations of $100.8 million for the quarter, reflecting a $147.6 million impairment on certain California assets the company had acquired before 2007. In a conference call later that day, Beazer confirmed that it had sold all land held in California for future developments. On this news, Beazer Homes’ stock price fell over 12%, to close at $12.51 per share on May 3, 2019, and continues to decline. The stock currently trades at just $9.64.
Beazer Homes USA, Inc. (BZH) Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can please send us a message via the Shareholder Information form below.