MIAMI, Jan. 14 /PRNewswire-FirstCall/ -- Lennar Corporation (NYSE: LEN and LEN.B.) -- In response to media inquiries, Lennar disclosed that it has named Barry Minkow and his company, Fraud Discovery, Inc., as additional defendants in a lawsuit alleging libel, extortion and various criminal acts against Lennar.

By adding Minkow and his company to a pre-existing lawsuit filed against Nicolas Marsch III in Miami, Lennar is taking all necessary and appropriate action to protect its investors and shareholders from the dissemination of false and scurrilous claims about the company. Marsch testified under oath yesterday at a deposition that he recently made an initial payment of between $50,000 and $100,000 to Minkow for his services.

The amended complaint, filed yesterday in the 11th Judicial Circuit Court in Miami-Dade County, Florida, states that Minkow, an ex-felon who was convicted of white-collar fraud, has been operating as an agent for Marsch in connection with the ongoing lawsuit. The complaint charges Marsch with extortion and wrongful conduct in connection with litigation over two real estate developments in Southern California known as The Bridges and The Lakes at Rancho Santa Fe.

The amended complaint states that Marsch escalated his wrongful conduct in 2008 by hiring Minkow and his company to use any means available, including fraud, identity theft and manipulation of securities markets, to wrongfully and falsely harm Lennar's business and reputation because Lennar refuses to accede to Marsch's demands for tens of millions of dollars.

The complaint states that among other things, with the knowledge, consent, and ratification of Marsch, Minkow and others have disseminated knowingly false and fraudulent accusations about Lennar and its senior executives in order to damage Lennar's reputation, stock price and business and to persuade Lennar to pay off Marsch.

The complaint states that in pursuing their illicit objectives, the defendants have committed numerous illegal, malicious, and harmful acts. It states that the defendants' conduct "was designed to severely and fraudulently manipulate and did manipulate the public market for Lennar's securities" by disseminating false and defamatory statements about Lennar, as Marsch had threatened to do in a July 11, 2008 letter to Lennar's independent board of directors if Lennar did not resolve the litigation to Marsch's satisfaction.

The lawsuit states that Minkow, after being retained by Marsch, contacted a Florida investment advisor to communicate to Lennar that Marsch and Minkow intended to go public with inflammatory allegations unless Lennar agreed to pay off Marsch. The lawsuit states that Minkow asked the investment advisor for help in obtaining information regarding Lennar and its executives, including Chief Operating Officer Jonathan Jaffe.

The lawsuit discloses that in mid-December, there was an illegal attempt to obtain confidential bank account information in order to investigate a loan transaction regarding Jaffe. The lawsuit alleges someone posing as Mr. Jaffe's loan broker, Robert Venneri, called Wells Fargo bank asking for details about Venneri's account. The caller specifically requested confidential information about an August 2007 transaction, the same time period that Venneri obtained a loan for Jaffe, according to the complaint.

This illegal attempt failed, the complaint states, when a bank employee placed the caller on hold, contacted the real Venneri and determined that the inquiry was fraudulent.

Lennar immediately commenced an investigation. As the facts evidencing the scheme were emerging in the litigation, Marsch and Minkow launched a widespread public attack on Lennar over the Internet and in the media by making "multiple false, malicious, and defamatory statements," according to the complaint.



    The amended complaint is available at:
http://www.lennar.com/Campaigns/PR/default.htm

CONTACTS: Glenn Bunting or Tony Knight at (310) 788-2850

glenn_bunting@sitrick.com or tony_knight@sitrick.com

Lennar Corporation, founded in 1954, is one of the nation's leading builders of quality homes for all generations. The Company builds affordable, move-up and retirement homes primarily under the Lennar brand name. Lennar's Financial Services segment provides primarily mortgage financing, title insurance and closing services for both buyers of the Company's homes and others. Previous press releases and further information about the Company may be obtained at the "Investor Relations" section of the Company's website, http://www.lennar.com .

SOURCE Lennar Corporation