Hagens Berman Sobol Shapiro Cases

Pulte Homes

Date Filed: October 23, 2009

Court: U.S. District Court

Location: California

Hagens Berman Sobol Shapiro filed a class-action lawsuit against Pulte Homes (NYSE: PHM) claiming the company engaged in a sophisticated and integrated fraudulent scheme to drive up home sales and home sale prices through company control of the home-buying process.

The suit claims Pulte created a 'one-stop shop' for homebuyers as the company controls the sale, financing, ancillary settlement services and appraisals involved in the process of buying a home.

This allowed Pulte to control home pricing, who received loans, and allowed unqualified buyers to get into adjustable-rate mortgages to boost sales, regardless of qualification or potential damage to the homeowner.

The suit claims these tactics created toxic subdivisions of Pulte homes, full of foreclosures and abandoned properties after homeowners could no longer keep up with mortgage payments. The suit claims Pulte homes dropped more than 50 percent in value from 2006 to 2008, significantly damaging homeowners.

The suit seeks to represent anyone who purchased a home from Pulte in California from Jan. 1, 2005 through March 1, 2007. Homeowners who wish to participate in this lawsuit can join here or e-mail attorneys at pulte@hbsslaw.com.