Brower Piven Encourages Investors Who Have Losses in Excess of $100,000 From Investment in Downey Financial Corp. to Inquire About the Lead Plaintiff Position in Securities Fraud Class Action Lawsuit

(PressMethod) - Brower Piven, A Professional Corporation announces that a class action lawsuit has been commenced in the United States District Court for the Central District of California on behalf of purchasers of the common stock of Downey Financial Corp. ("Downey" or the "Company") (NYSE:DSL - News) between October 16, 2006 and March 14, 2008, inclusive (the "Class Period"). No class has yet been certified in this action.
ADVERTISEMENT


Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff no later than July 15, 2008 and be selected by the Court. The lead plaintiff will direct the litigation and participate in all important decisions including whether to accept a settlement and how much of a settlement to accept for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. If you have a net loss in excess of $100,000 incurred from transactions in Downey securities during the Class Period and are interested in directing the course of this litigation for plaintiffs, please contact Brower Piven (hoffman@browerpiven.com or 410/332-0030) to answer any questions you may have in that regard.

The complaint alleges that, during the Class Period, the Company, and certain of its officers and/or directors, violated federal securities laws by withholding material facts from the investing public, including: that defendants' portfolio of Option ARMs contained millions of dollars worth of impaired and risky securities backed by subprime mortgage loans; that prior to the Class Period, Downey became more aggressive by acquiring risky loans from brokers; and that defendants failed to properly account for highly leveraged loans and to adequately reserve for Option ARM loans in, at risk of, default.

After announcing on October 10, 2007 that it expected to incur an operating loss for the 2007 third quarter, on March 17, 2008, Downey released financial results showing an increase in non-performing assets. This news caused Downey's stock price to drop.

If you have suffered a net loss for all transactions in Downey securities during the Class Period (including shares or possibly calls purchased during, but retained after, the Class Period or possibly put options sold but not covered until after the Class Period), you may obtain additional information about this lawsuit and your ability to become a lead plaintiff by contacting Brower Piven at www.browerpiven.com, by email at hoffman@browerpiven.com, by calling 410-332-0030, or at Brower Piven, A Professional Corporation, The World Trade Center-Baltimore, 401 East Pratt Street, Suite 2525, Baltimore, Maryland 21202. Attorneys at Brower Piven have combined experience litigating securities and class action cases of over 40 years. If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice.



Contact:
CONTACT:
Brower Piven, A Professional Corporation
Baltimore, Maryland
Charles J. Piven
410/332-0030

CONTACT INFORMATION

Email Us

http://

###

Disclaimer: If you have any questions regarding information in these press releases please contact the company listed in the press release. Please do not contact PressMethod. We will be unable to assist you with your inquiry. PressMethod disclaims any content contained in these release.