H&R Block shares fall sharply after Reuters reports bond holders moving to recover billions

Shares of H&R Block tumbled 9 percent after Reuters reported that holders of soured mortgage bonds issued by the companys former subprime lending business were banding together to try to recover billions of dollars in losses. The May 9 story on the well-known tax preparer laid out how bond investors were using a novel, more public approach to recover their money, emboldened by recent billion-dollar settlements involving other lenders. The story sent traders piling into H&R Blocks put options and sparked remarkably heavy stock trade volume.