Cohen, Milstein, Hausfeld & Toll, P.L.L.C. Announces Class Action Lawsuit Against American Home Mortgage Investment Corp.

The law firm Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has filed a lawsuit in the United States District Court for the Eastern District of New York on behalf of its client and on behalf of other similarly situated purchasers of American Home Mortgage Investment Corporation ("American Home Mortgage” or the "Company”) (NYSE:AHM) common stock between April 26, 2006 through and including July 30, 2007 (the "Class Period”). The complaint charges American Home Mortgage and certain of its officers and directors with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act”). It is alleged that defendants omitted or misrepresented material adverse facts about the Company’s financial condition, business prospects, and revenue expectations during the Class Period. American Home Mortgage is a real estate investment trust (REIT), which engages in the investment and origination of residential mortgage loans in the United States. The Company primarily originates and sells securitized adjustable-rate mortgage loans, as well as engages in the sale of mortgage loans to institutional investors and servicing mortgage loans owned by others. Specifically, the complaint alleges that, during the Class Period, defendants issued numerous materially false and misleading statements which caused American Home Mortgage’s securities to trade at artificially inflated prices. As alleged in the complaint, these statements were materially false and misleading because they misrepresented and failed to disclose that: (1) the Company was experiencing an increasing level of loan delinquencies which was depressing its earnings; (2) the Company was experiencing increasing difficulties in selling its loans and, therefore, was required to decrease prices, thereby reducing margins and profits; and (3) as a result of the foregoing, the Company was overstating its financial results by failing to write-down the value of certain loans in its portfolio as these loans had declined substantially in value. According to the complaint, on June 27, 2007, after the market closed, American Home Mortgage issued a press release announcing that it will take "substantial charges for credit-related expenses in the second quarter.” The Company reported that the increase in losses was related to its practice of extending a three month timely payment warranty that the Company granted to loan buyers who purchased stated income loans. In response to this announcement, the price of American Home Mortgage stock declined from $20.91 per share to $18.38 per share on extremely heavy trading volume. Then, on July 27, 2007, after the close of the market, American Home Mortgage issued a press release announcing that its Board of Directors had determined to delay paying its dividend. On the next trading day, July 30, 2007, before the marked opened, the NYSE halted trading in American Home Mortgage stock. In response to these events and announcements, the Company’s stock declined from $10.47 on July 30, 2007 to close at $1.04 on July 31, 2007 on unusually high trading volume. If you are a member of the class, you may, no later than October 1, 2007 request that the Court appoint you as Lead Plaintiff of the class. Any member of the purported class may move the Court to serve as Lead Plaintiff through counsel of their choice or may choose to remain an absent class member. Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has significant experience in prosecuting investor class actions and actions involving securities fraud. The firm has offices in Washington, D.C., New York, Philadelphia, Chicago and London, and is active in major litigation pending in federal and state courts throughout the nation. You may visit the firm’s website at www.cmht.com. The firm’s reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm to lead positions in complex multi-district or consolidated litigation. Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has taken a lead role in numerous important cases on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total in the billions of dollars. If you have any questions about this notice or the action, or with regard to your rights, please contact either of the following: Steven J. Toll, Esq. Dana Frusco Cohen, Milstein, Hausfeld & Toll, P.L.L.C. 1100 New York Avenue, N.W. West Tower, Suite 500 Washington, D.C. 20005 Telephone: (888) 240-0775 or (202) 408-4600 Email: stoll@cmht.com or dfrusco@cmht.com