 | ||
|
| Home Annual/Quarterly Updates About Us
|
Investors Financial Services Corporation Summary: The original Complaint alleges that Defendants caused IFIN shares to trade at artificially inflated levels through the issuance of false and misleading financial statements and guidance. The Company's statements served to convince investors that the Company's financial statements were accurate, including results for revenues, growth and interest income, and the Company had shrewdly built into its models and assumptions the impact of continued interest rate compression and flattening of the US interest rate yield curve.
In October 2004, the Company surprised the market when they finally revealed the need to restate financial results over a three-year period. On October 21, 2004, the price of IFIN stock plummeted, from its previous close of $43.70 to $36.50, on volume of over 11 million shares. Later, the Company revealed that during the period from 2001 to 2004, Investors had overstated net interest income by as much as $6.2 million.
The complaint further alleges that on or around July 14, 2005, IFIN dropped 15% after the financial back-office company slashed earnings guidance, citing interest rate pressure. Once again, the Company announced an unprecedented "reset" of their 2005 quarterly and 2005 yearly guidance. Defendants did this, allegedly, to bring their numbers in line with the "new" realities of market-driven rates and rate spreads. The Complaint alleges further that IFIN's assertions that an interest rate event peculiar to the second quarter served as the purported "trigger" for the Company's changed circumstances. This was false. In fact, the Complaint alleges, the change in the Company's fortunes was a direct result of the dramatic flattening of the yield curve and contraction of rate spreads. The Company cited a flatter-than-expected yield curve; narrower-than-expected reinvestment spreads; weaker-than-expected market-sensitive revenues, which included fees, linked to both the equity and foreign currency markets; and continued investments in headcount and technology to support new and existing clients.
On July 15, 2005, the price of IFIN shares plummeted from its previous close of $41.52 to $34.05 for a loss 17.9% percent of their value on unprecedented volume of over 22 million shares. The Class Period high was $53.44; it now trades under $35 per share.
Investors Financial Services Corp. ("IFIN") operates as a bank holding company for Investors Bank & Trust Company that provides asset managers with services including global custody, multi-currency accounting and mutual fund administration in the United States.
According to the Company’s FORM 10-Q for the quarterly period ended September 30, 2006, the U.S. District Court has consolidated three purported class action complaints and appointed a lead plaintiff, who filed a consolidated complaint against the Company and seven of its current and former officers on February 3, 2006. Among other things, the consolidated complaint asserts that the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 during the period April 10, 2001 until July 15, 2005. The allegations in the consolidated complaint predominantly relate to: (1) the Company’s October 2004 restatement of its financial results, and (2) the Company’s July 2005 revision of public guidance regarding its future financial performance. The consolidated complaint seeks unspecified damages, interest, fees, and costs. On May 14, 2006, the Company filed a motion to dismiss all claims asserted in the consolidated complaint. That motion is currently pending before the Court.
On July 31, 2007, the Court entered the Order dismissing the complaint without prejudice. On October 30, 2007, the plaintiffs filed a First Amended Consolidated Complaint, and on January 11, 2008, the defendants responded by filing a motion to dismiss the First Amended Consolidated Complaint.
According to the docket, the Magistrate Judge entered a Reports and Recommendation to the court stating the case should be dismissed with prejudice on January 13, 2009. On March 19, 2009 the judge entered a Final Order dismissing the case with prejudice and closing the docket.
INDUSTRY CLASSIFICATION:
SIC Code: 6282
Sector: Financial
Industry: Investment Services
| COMPANY/ISSUER NAME: | Investors Financial Services Corporation |
| COMPANY/ISSUER TICKER: | IFIN |
| COMPANY WEBSITE: | http://www.investorsbnk.com |
| FIRST IDENTIFIED COMPLAINT IN THE DATABASE | |||||||||||||||||
| The Archdiocese of Milwaukee Support Fund, et al. v. Investors Financial Services Corporation, et al. | |||||||||||||||||
| |||||||||||||||||
| DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT | |||
| Class Action Complaint for Violations of Federal Securities Laws | |||
| Type: Complaint | Date on the document: 08/04/2005 | ||
| Order Approving The City Of Deerfield Beach Non-Uniform Employees Retirement Plan And The Ironworkers St. Louis District Council Pension Fund's Motion For Consolidation, Appointment As Lead Plaintiffs And For Approval Of Selection Of Lead And Liaison Counsel | |||
| Type: Order | Date on the document: 11/02/2005 | ||
| REFERENCE COMPLAINT | |||||||||||||||||
| The Archdiocese of Milwaukee Support Fund, et al. v. Investors Financial Services Corporation, et al. | |||||||||||||||||
| |||||||||||||||||
| DOCUMENTS FOR THE REFERENCE COMPLAINT | |||
| Lead Plaintiffs’ [Corrected] Consolidated Complaint For Violation Of The Federal Securities Laws | |||
| Type: Complaint | Date on the document: 02/03/2006 | ||
| Report And Recommendation On Defendants' Motion To Dismiss | |||
| Type: Order | Date on the document: 07/31/2007 | ||
| Lead Plaintiffs' First Amended Consolidated Complaint For Violation Of The Federal Securities Laws | |||
| Type: Complaint | Date on the document: 10/30/2007 | ||
| Judgment Of Dismissal | |||
| Type: Order | Date on the document: 03/19/2009 | ||
| U.S. District Court Civil Docket | |||
| Type: Docket | Date on the document: 3/19/2009 | ||
| OTHER DOCUMENTS | |||
| Class Action Complaint - Jury Trial Demanded | |||
| Case Name and/or Number: Robert Faussner, et al. v. Investors Financial Services Corp., et al. | |||
| Type: Complaint | Date on the document: 08/12/2005 | ||
WARNING AND DISCLAIMER OF LIABILITY:
The information included on this Web site, whether provided by personnel employed by Stanford Law School or by third parties, is provided for research and teaching purposes only. Neither Stanford University, Stanford Law School, nor any of their employees, agents, contractors, or affiliates warrant the accuracy or completeness of the information or analyses displayed herein, and we caution all readers that inclusion of any information on this site does not constitute an endorsement of the truthfulness or accuracy of that information. In particular, this Web site contains complaints and other documents filed in federal and state courts, which make allegations that may or may not be accurate. No reader should, on the basis of information contained in or referenced by this Web site, assume that any of these allegations are truthful.
Go to Search page | Go to Case Index page | Back to Top