MIAMI, Jul 13, 2009 (BUSINESS WIRE) ----Hagens Berman, the law firm representing homeowners in class-action lawsuits in Arizona and California against KB Home (NYSE: KBH), Countrywide Financial and LandSafe Appraisal Services, is claiming the three conspired to illegally rig home appraisals in KB developments and has begun investigating similar claims in Florida.

The filed lawsuits contend KB Home (NYSE: KBH) conspired with Countrywide and LandSafe to rig the appraisal process in order to drive development prices upward and increase KB Home profits, often using inflated comparisons to justify the high sales prices.

"Since we filed the Arizona and California actions, we have heard from KB customers in other states saying they fell victim to similar practices," said HBSS managing partner, Steve Berman. "Many of those calls came from KB home purchasers in Florida."

The lawsuit, filed earlier this month in U.S. District Court in Arizona, claims KB and the other defendants inflated home prices by as much as $280 million in Arizona and Nevada, and another $300 million in California using the same scheme.

As stated by published sources, KB Home has 76 communities in Florida.

According to the filed lawsuits, KB Home directed home purchasers to Countrywide for financing and Countrywide funneled all its KB customers' home appraisals to a small group of appraisers at LandSafe, an appraisal subsidiary owned by Countrywide. According to the complaints, the appraisers would then deliver an appraisal value at whatever price point KB and Countrywide ordered.

In two KB Home developments cited in the complaint, sampled appraisals were inflated an average of $82,169 per property.

Contact Winter Spires of Pleat & Perry at 850-650-0599 for more information on the impacts here in Florida.