E*TRADE Financial Corporation - Securities Class Action

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Stanford Law School

E*TRADE Financial Corporation Summary: According to a press release dated October 2, 2007, the complaint charges E*TRADE and certain of its officers and directors with violations of the Exchange Act. E*TRADE, through its subsidiaries, offers financial solutions to retail and institutional customers worldwide. In addition, the Company offers mortgage, home equity, and margin and credit card products; real estate loans; and various consumer loans, including recreational vehicle, marine, commercial, automobile, and credit card loans.

Specifically, according to the complaint, during the Class Period, defendants issued materially false and misleading statements that misrepresented and failed to disclose: (a) that the Company was experiencing a rise in delinquency rates in its mortgage and home equity portfolios; (b) that the Company failed to timely record an impairment on its mortgage and home equity portfolios; (c) that the Company’s securities portfolio, which includes assets backed by mortgages, was materially overvalued; and (d) that based on the foregoing, Defendants’ positive statements about the Company’s earnings and prospects were lacking in a reasonable basis at all times.

The complaint further alleges that on September 17, 2007, the Company announced that it will exit the wholesale mortgage and it is revising its guidance for 2007, among other things. Upon this news, shares of the Company’s stock fell $2.32 per share, or over 15%, over the next six trading days as the investing public digested the news.

On July 16, 2008 the judge appointed lead plaintiffs and approved their selection of lead counsel in the consolidated case. Plaintiffs have been given until the end of 2008 to file a Consolidated Complaint with other scheduling deadlines set to run through June 2009.

On January 16, 2009, a Consolidated Amended Class Action Complaint For Violations Of The Federal Securities Laws against the defendants was filed with the court.

On May 11, 2010, the Defendant’s motion to dismiss was denied by the Court for reasons that the Defendants were not able to establish that the risks which materialized in the action were unforeseeable as a matter of law.

INDUSTRY CLASSIFICATION:
SIC Code: 6035
Sector: Financial
Industry: Investment Services

COMPANY/ISSUER NAME:	*ETRADE Financial Corporation**
COMPANY/ISSUER TICKER:	ETFC
COMPANY WEBSITE:	http://www.etrade.com

FIRST IDENTIFIED COMPLAINT IN THE DATABASE

Larry Freudenberg, et al. v. E*TRADE Financial Corporation, et al.

COURT: S.D. New York	DOCKET NUMBER: 07-CV-08538
JUDGE NAME: Hon. Robert W. Sweet
DATE FILED: 10/02/2007	SOURCE: Notice of Filing
CLASS PERIOD START: 12/14/2006	CLASS PERIOD END: 09/25/2007
TYPE OF COMPLAINT: Complaint (Unamended and Unconsolidated)
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Brodsky & Smith, LLC (former Pennysylvania) 11 Bala Avenue, Suite 39, Bala Cynwyd, PA, 19004 (voice) 610.668.7987, (fax) 610.660.0450, esmith@Brodsky-Smith.com Coughlin Stoia Geller Rudman & Robbins LLP (Melville) 58 South Service Road, Suite 200, Melville, NY, 11747 (voice) 631.367.7100, (fax) 631.367.1173, info@csgrr.com/ Gardy & Notis, LLP 440 Sylvan Avenue, Englewood Cliffs, NJ, 07632 (voice) 201-567-7377, (fax) 201-567-7337, info@gardylaw.com Glancy Binkow & Goldberg LLP (NY) 1501 Broadway, Suite 1416, New York, NY, 10036 (voice) 917.510.000, (fax) 646.366-089, info@glancylaw.com Kirby McInerney LLP (Former) 830 Third Avenue 10th Floor, New York, NY, 10022 (voice) 212.317.2300, (fax) , Lionel Z. Glancy 1801 Avenue of the Stars Suite 308, Los Angeles, CA, 90067 (voice) 310.201.9150, (fax) , Schiffrin Barroway Topaz & Kessler, LLP (Radnor) 280 King of Prussia Road, Radnor, PA, 19087 (voice) 610.667.7706, (fax) 610.667.7056, info@sbtklaw.com Smith & Smith LLP 3070 Bristol Pike, Suite 112, Bensalem, PA, 19020 (voice) 215.638.4847, (fax) 215.638.4867, _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 8

DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT
Class Action Complaint for Violations of Federal Securities Laws - Demand for Jury Trial
Type: Complaint		Date on the document: 10/02/2007
Order Appointing Lead Plaintiff And Approving Selection Of Lead Counsel
Type: Order Appointing LP/LC		Date on the document: 7/17/2008
U.S. District Court Civil Docket
Type: Docket		Date on the document: 9/5/2008

REFERENCE COMPLAINT

E*Trade Financial Corp. Securities Litigation

COURT: S.D. New York	DOCKET NUMBER: 07-CV-08538
JUDGE NAME:
DATE FILED: 01/16/2009	SOURCE: Docket
CLASS PERIOD START: 04/19/2006	CLASS PERIOD END: 11/09/2007
TYPE OF COMPLAINT: First Amended and Consolidated
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Brower Piven (New York) 488 Madison Avenue. Eighth Floor, New York, NY, 10022 (voice) 212.501.9000, (fax) 212.501.0300, info@browerpiven.com Levi & Korsinsky, LLP (former) 39 Broadway, Suite 1440, New York, NY, 10006 (voice) 212.363.7500, (fax) 212.363.7171, _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 2

DOCUMENTS FOR THE REFERENCE COMPLAINT
Consolidated Amended Class Action Complaint For Violations Of The Federal Securities Laws
Type: Complaint		Date on the document: 01/16/2009
U.S. District Court Civil Docket
Type: Docket		Date on the document: 02/02/2010
Opinion
Type: Other		Date on the document: 05/11/2010
U.S. District Court Civil Docket
Type: Docket		Date on the document: 05/18/2010
U.S. District Court Civil Docket
Type: Docket		Date on the document: 08/24/2011
U.S. District Court Civil Docket
Type: Other		Date on the document: 11/16/2011

OTHER DOCUMENTS
Class Action Complaint - Jury Trial Demanded
Case Name and/or Number: William Boston, et al. v. E*TRADE Financial Corporation, et al.
Type: Complaint		Date on the document: 10/12/2007
Class Action Complaint for Violations of Federal Securities Laws - Jury Trial Demanded
Case Name and/or Number: Wendy M. Davidson, et al. v. E*TRADE Financial Corporation, et al.
Type: Complaint		Date on the document: 11/16/2007

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