Class Action Suits Against Major Builder, Lender Accused Of Controlling Apraisal Process To Artificially Inflate Home Values Expand To Florida, NC, SC

From a press release from the law firm of Hagens Berman Sobol Shapiro:

• A Central Florida homeowner forced into foreclosure filed a class-action lawsuit last week against KB Home, Countrywide Financial and LandSafe Appraisal Services, claiming the three conspired to rig housing prices in Florida, South Carolina and North Carolina, costing home purchasers millions of dollars, and fueling the collapse of the region's housing market.

• The suit, filed in U.S. District Court in Orlando, Fla. on Friday, October 30, claims the three companies employed a well-planned scheme to control the typically independent appraisal process, jacking up home values, which, in turn, were used to determine the value of other homes sold by KB, affecting thousands of homeowners. This is the third lawsuit Hagens Berman Sobol Shapiro filed against KB Home, Countrywide and LandSafe alleging a widespread and complicated inflation scheme. The other lawsuits represent homeowners in California, Arizona and Nevada.

For the entire press release, see Class-Action Lawsuits Against KB Home Expand to Florida, NorthCarolina and South Carolina (Lawsuit cites similar claims to California and Arizona complaints, alleging price inflation scheme).

For the lawsuit, see Sullivan v. KB Home et al.

Go here for information on the other class action lawsuits filed against KB Homes.