Bankruptcy fears gut Beazer Homes shares

The possible bankruptcy of Charlotte, N.C.-based Beazer Homes USA Inc. caused investors to dump its stock today. Its shares were down 19.8 percent, to $11.34, at noon.

Beazer, which entered the Indianapolis area in 2002 through its acquisition of locally based Crossmann Communities Inc., is the second-largest homebuilder in the area, according to IBJ ‘s Book of Lists.

U.S. Global Investors Inc. senior trader Michael Nasto was quoted by Bloomberg as saying “We’re hearing Beazer is supposedly going bankrupt. If in fact that comes to fruition, the market’s going to be in a world of hurt.”

The Securities and Exchange Commission launched an investigation of Beazer last week, and the FBI disclosed in March that it was looking into possible fraud

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