A Tarragon spokesman said it's the company's policy not to comment on pending litigation.
The complaint claims Tarragon stock traded at artificially inflated prices, reaching a high of $26.76 a share on July 22, 2005, as a result of defendants' false statements. The stock then fell, reaching 94 cents a share on Aug. 9, when Tarragon said its quarterly report would be delayed to give the company time to evaluate more than $125 million in property impairment charges and other write-downs made necessary by its decision to sell properties under adverse market conditions.
Tarragon and its subsidiaries are active in the Northeast, Florida, Texas and Tennessee.
Fort Lauderdale-based subsidiary Tarragon South is the developer of Las Olas River House, a high-rise in downtown Fort Lauderdale that was completed last year, but still has at least 22 units up for sale; and a planned mixed-use project with a condo tower on the site of the Gay & Lesbian Community Center on Andrews Avenue in Fort Lauderdale.
Tarragon is also an equity partner with Coscan Homes in Orchid Grove, a condo and townhouse community under construction in Pompano Beach.
