Beazer Homes USA, Inc. (BZH) Accused of Failing to Disclose Pertinent Information to Investors
According to the complaint against the company’s officers and directors for breaches of fiduciary duties and unjust enrichment from August 1, 2014 through the present, Beazer Homes USA, Inc.’s (BZH) California assets that were classified as land for future development were deteriorating in value or improperly valuated, which created a foreseeable risk of substantial impairment that would materially impact the profitability of the Company. Beazer’s officers and directors attempted to conceal this pertinent information by attributing the decline in its profit to market factors, macro-economic factors, and other factors out of their control. The reality of Beazer Homes’ situation was revealed in May 2019, when Beazer Homes issued a press release revealing a net loss of $100.8 million, reflecting a $147.6 million impairment on California assets currently or previously classified as land held for future development. On this news, the Company’s stock price fell $1.73 per share, or 12.15%, to close at $12.51, and has yet to recover.