LUM Luminent Mtg Cap

RADNOR, Pa., Aug. 15 /PRNewswire/ -- The following statement was issued today by the law firm of Schiffrin Barroway Topaz & Kessler, LLP: Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Northern District of California on behalf of all purchasers of securities of Luminent Mortgage Capital, Inc. (NYSE:LUM) ("Luminent" or the "Company") from October 10, 2006 to August 6, 2007, inclusive (the "Class Period"). If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin Barroway Topaz & Kessler, LLP (Darren J. Check, Esq. or Richard A. Maniskas, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at . The Complaint charges Luminent and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Luminent is a real estate investment trust that invests primarily in the United States agency and other single-family, adjustable-rate, hybrid adjustable-rate and fixed-rate, mortgage-backed securities, which it acquires in the secondary market. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: 1) that the Company's investments were not "high quality" as previously represented; (2) that the Company had failed to employ a disciplined and sophisticated hedging program for the interest rate and credit risks in its portfolio; (3) as such, the Company would be forced to eliminate its promised dividend payment to shareholders going forward; (4) that the Company lacked adequate internal and financial controls; and (5) that, as a result of the above, the Company's statements about its financial well-being and future business prospects were lacking in a reasonable basis when made. The Company shocked investors on August 6, 2007 when it announced that it had experienced a significant increase in margin calls on its "highest quality assets," as well as a decrease on the financing advance rates provided by its lenders. As a result, the Company's Board of Directors suspended payment of the Company's second quarter cash dividend of $0.32 per share, cancelled the Company's second quarter 2007 earnings conference call scheduled for August 9, 2007, and stated that it would delay filing the Company's quarterly report with the SEC. On news of this, Luminent's shares fell $1.95, or over 30 percent, to close on August 6, 2007 at $4.37 per share. Then on August 7, 2007, the Company attempted to assure investors that it was "moving forward with its efforts to enhance its liquidity and preserve the value of its portfolio of assets which is comprised substantially of high quality mortgage loans." Therein, the Company again stated that that it had experienced a significant increase in margin calls on its "highest quality assets," as well as a decrease on the financing advance rates provided by its lenders. On news of this, shares of Luminent fell an additional $3.29 per share, or over 75 percent, to close on August 8, 2007 at $1.08 per share, on unusually heavy trading volume. Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin Barroway Topaz & Kessler which prosecutes class actions in both state and federal courts throughout the country. Schiffrin Barroway Topaz & Kessler is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. For more information about Schiffrin Barroway Topaz & Kessler or to sign up to participate in this action online, please visit http://www.sbtklaw.com/ If you are a member of the class described above, you may, not later than October 9, 2007, move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Schiffrin Barroway Topaz & Kessler or other counsel of your choice, to serve as your counsel in this action. CONTACT: Schiffrin Barroway Topaz & Kessler, LLP Darren J. Check, Esq. Richard A. Maniskas, Esq. 280 King of Prussia Road Radnor, PA 19087 1-888-299-7706 (toll free) or 1-610-667-7706 Or by e-mail at DATASOURCE: Schiffrin Barroway Topaz & Kessler, LLP CONTACT: Darren J. Check, Esq., or Richard A. Maniskas, Esq., +1-888-299-7706, or +1-610-667-7706, , both of Schiffrin Barroway Topaz & Kessler, LLP Web site: http://www.sbtklaw.com/

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