Welcome to the NovaStar Financial Securities Litigation Home Page.

If you purchased or otherwise acquired the common stock of NovaStar Financial, Inc. during the Class Period and still held those shares as of
April 8, 2004 and were damaged thereby, then you could
get a payment from this class action settlement.

If you sold NovaStar put options during the Class Period whose option extended beyond April 8, 2004, and said option was exercised after
April 8, 2004, and you were damaged thereby, then you could
get a payment from this class action settlement.

If you are a Class Member, your legal rights are affected whether or not you take action.

During the period of October 29, 2003 through April 8, 2004 inclusive, NovaStar Financial was a real estate investment trust (REIT) engaged primarily in the business of residential “sub prime” lending. The Class alleges that during this period NovaStar and the Individual Defendants made materially false and misleading statements and omissions in NovaStar’s public reports and documents, thereby artificially inflating the prices of the securities and damaging members of the Class. The Defendants deny all allegations of misconduct contained in the Complaint, and deny having engaged in any wrongdoing whatsoever.

The Court did not decide in favor of Plaintiffs or Defendants, instead both sides agreed to a Settlement which provides a $7.25 million fund for the benefit of Class Members.

Note: This website is provided as a service to potential class members. The information provided is in summary form and is not intended as a complete explanation of your rights. For full and complete information, you are directed to review carefully the Notice and Proof of Claim.