Industry News

Investigations, lawsuits target Beazer Homes

SEC inquiry probes securities practices

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Builder Beazer Homes USA Inc. (NYSE: BZH) announced this week that the U.S. Securities and Exchange Commission is investigating whether company officials or business entities have violated federal securities laws, adding to its list of legal troubles. The company received notice May 1 about an informal SEC inquiry, according to a Thursday announcement. Also, a class-action lawsuit was filed against the company April 30 on behalf of current and former participants and beneficiaries in Beazer's employer-sponsored retirement plan. The complaint, filed in the Atlanta Division of the U.S. District Court for the Northern District of Georgia, "alleges breach of fiduciary duties, including those set forth in the Employee Retirement Income Security Act as a result of the investment of retirement monies held by the 401k plan in common stock of Beazer Homes at a time when participants were allegedly not provided timely, accurate and complete information concerning Beazer Homes," compa...