LUM Luminent Mtg Cap

PHILADELPHIA, Sept. 12 /PRNewswire/ -- The law firm Berger & Montague, P.C. announces that it has commenced a securities class action in the United States District Court for the Northern District of California, on behalf of purchasers of the common stock of Luminent Mortgage Capital, Inc. (NYSE:LUM) "Luminent" or the "Company" from October 10, 2006 through August 6, 2007, inclusive (the "Class Period"). 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 in 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 unable to maintain its regular 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 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 dividends 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 $3.30, or over 75 percent, to close on August 7, 2007 at $1.08 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 its assets which is comprised substantially of high quality mortgage loans." Therein, the Company again stated that it had experienced a significant increase in margin calls on its "highest quality assets," as well as decrease on the financing advance rates provided by its lenders. On news of this, shares of Luminent fell again to close on August 8, 2007 at $0.95 per share, on unusually heavy trading volume. If you purchased Luminent securities during the Class Period, you may, no later than October 9, 2007 move to be appointed as a Lead Plaintiff in this class action. A Lead Plaintiff is a representative, chosen by the Court, that acts on behalf of other class members in directing the litigation. The Private Securities Litigation Reform Act of 1995 directs Courts to assume that the class member(s) with the "largest financial interest" in the outcome of the case will best serve the class in this capacity. Courts have discretion in determining which class member(s) have the "largest financial interest," and have appointed Lead Plaintiffs with substantial losses in both absolute terms and as a percentage of their net worth. Berger & Montague, P.C. is a Philadelphia law firm with 70 attorneys, all of whom have represented plaintiffs in complex litigation. The Berger firm has extensive experience representing plaintiffs in class actions securities litigation and has played lead roles in major cases for over 25 years. The standing of Berger & Montague, P.C. in successfully conducting major securities litigation has been recognized by courts nationwide. If you purchased Luminent securities during the Class Period, please visit our website at http://www.bergermontague.com/ to view the complaint. Please contact: Arthur Stock, Esquire Kimberly A. Walker, Investor Relations Manager Berger & Montague, P.C. 1622 Locust Street Philadelphia, PA 19103 (888) 891-2289 - phone (215) 875-5715 - fax DATASOURCE: Berger & Montague, P.C. CONTACT: Arthur Stock, Esquire, or Kimberly A. Walker, Investor Relations Manager of Berger & Montague, P.C., +1-888-891-2289, Web site: http://www.bergermontague.com/

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