Lennar Corporations Joint Venture Investments Harvard Case Solution & Analysis

In early 2009, Lennar Corporation, one of the largest construction companies in the U.S., became the center of a deep global recession, a major credit crisis, the collapse of housing prices and mortgage defaults caused mass unemployment in the double-digit U.S. At the same time, the company faced criticism from Fraud Discovery Institute (FDI), which is more of a personal loan taken out Lennar executive from a related party, and extensive use of joint venture company for the development, construction, and in the secondary market was rigged. FDI was one of the founders of Barry Minkow, who previously was tried and convicted on 57 counts of securities fraud and sentenced to 25 years in federal prison after the collapse of ZZZZ Best Company, Inc as of November 30, 2008, Lennar was 116 unconsolidated joint ventures. Anna Amphlett, financial analyst Southern Cross Investments LLC, was asked to prepare a report on the joint venture Lennar and the methods used to account for these investments. FDI, the main reason for the creation of joint ventures was to finance their investments with the "off balance sheet" debt. Release of the report of FDI led to a 20% drop in the value of the company. "Hide
by Graeme Rankine Source: Thunderbird School of Global Management 20 pages. Publication Date: September 23, 2010. Prod. #: TB0235-PDF-ENG

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