Lennar Corporation Lowers First-quarter Earnings After Litigation Charge

Lennar Corporation said Monday that it recorded a one-time litigation charge of $140 million, relating to a property case from 2008, meaning the company has to restate its first quarter earnings. Lennar had previously stated first quarter net earnings of $130.8 million or 56 per diluted share on March 21 and now says first quarter net earnings are $38.1 million or 16 cents per diluted share. Since its earnings release, the company had a hearing in the court of appeals for a case dating back to 2008 over whether the company was required to purchase a property in Maryland. The $140 million charge includes the company's estimate of fair value for the property. Shares of Lennar have fallen 4% in the past month, compared to the S&P 500's loss of 1%.