First Alliance Shareholder Alleges Misrepresentation

A shareholder sued Irvine-based First Alliance Corp., alleging that the sub-prime mortgage lender misrepresented operating results and business prospects.

The complaint, filed in Orange County Superior Court, charges that certain directors and officers sold the company’s stock at inflated prices.

The suit seeks class-action status on behalf of investors who bought First Alliance stock from April 24, 1997, to May 28, 1998.

First Alliance announced May 28 that second-quarter earnings won’t meet earlier estimates. A company spokesperson couldn’t be reached for comment.