Atlanta-based homebuilder Beazer Homes USA Inc. has been making headlines in the Charlotte Observer lately for what seems to be a high foreclosure rate, compared to other starter home builders, according to reporter Binyan Appelbaum.

While the newspaper is unrolling detail upon detail about the poor souls who are losing homes in a four-part series that is more reminiscent of a multi-media campaign, the company put forth a statement that “there have been no allegations of any wrongdoing,” and it posted press statements to its website.

BusinessWeek picked up the story and federal investigations commenced, with one Federal Bureau of Investigation spokesperson saying that the agency was "looking at all types of [potential] fraud associated with Beazer — corporate, mortgage, investments."

Trial by media is a real and continuing problem.  In fact, the publicly traded company’s market value slid 18%. And now there are two personal injury law firms canvassing for “victims.” 

According to a Reuters article, one firm is seeking class action status on the basis the company sold houses to unqualified buyers.  The other firm, Law Offices of Marc Henzel, is seeking shareholders to join his suit for “shareholder fraud.”

Bad actor, bad luck or bad execution in crisis management?  The jury (investigation) is still out.