Subprime lender Accredited Home Lenders Holding Co. said Monday it is in discussions for a possible financing deal as it fights to keep its stock listed on Nasdaq.

Accredited (Charts) also said a lawsuit seeking class-action status has been filed against the company and its officers. The suit alleges Accredited issued false and misleading statements. The company said it believes the lawsuit has no merit.

The subprime mortgage market is heading for a meltdown with some major lenders defaulting on current financial agreements. CNN's Gerri Willis reports. (March 10)

Accredited said it is currently in discussions regarding a possible financing arrangement with a third party that would provide additional liquidity. The company has retained a financial adviser for the discussions.

Countrywide Financial (Charts), Washington Mutual Inc. (Charts), Wells Fargo (Charts) and others also makes subprime loans.