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Franklin Bank Corporation Summary: According to a law firm press release, plaintiffs filed suit against Franklin Bank and the Company's CEO and CFO during the Class Period. The complaint alleges that defendants violated the Securities Exchange Act of 1934. Specifically, the complaint alleges that, during the Class Period, the defendants engaged in a variety of accounting improprieties, including their admitted failure to charge off uncollectible loans and to mark Franklin's loans to market. As a result of the misconduct alleged, defendants understated the Company's delinquent, nonperforming, and uncollectible loans and thereby misrepresented Franklin's financial condition and results, including its overall and per-share profits and the fair market value of its residential mortgage loan portfolio.
On June 10, 2008, a corrected class action complaint was filed. Just as quickly, an order for initial pretrial and scheduling conference and order to disclose interested person was entered on June 11, 2008. On July 17, 2008, an agreed motion to Consolidate Lead Case No. 4:08-CV-1810 and Member Case No. 4:08-CV-1843, 4:08-CV-1891 was filed. The above mentioned motion was granted by Judge Samuel B Kent in an order entered on July 31, 2008. On August 05, 2008, several motions for the appointment of lead plaintiffs and the selection of lead counsels were filed by different groups and individuals.
On November 10, 2008, the Court the order consolidating several actions. On November 19, 2008, the Court entered an Order Designating Lead Plaintiff. On March 6, 2009, the lead plaintiffs filed a Consolidated Amended Complaint.
On May 4, 2009, a complaint was filed titled in the U.S. District Court for the Southern District of Texas, titled The Harold Roucher Trust U/A DTD, et al. v. RBC Capital Markets Corp., et al., case number 09-CV-01348. This action is related to a pending case in the same Court against the parent company. The lead plaintiff in that case has not asserted any claims on behalf of Franklin's preferred stock purchasers. The claims asserted within the complaint are not all of the claims that can or should be asserted on behalf of preferred stock purchasers, but they are asserted herein out of an abundance caution because of the impending expiration of the repose period under the Securities Act." On August 6, 2008, Franklin disclosed that it needed to restate its previously disclosed financial results not merely for the third quarter of 2007, but for all of fiscal year 2007 and fiscal year 2006. These shocking disclosures revealed not only that the Bank's financial results for the past several years were unreliable but also that the Bank's accounting procedures and internal controls, as well as its lending practices, were severely deficient and as a result the Bank's financial position was imperiled. As a result of these disclosures, several disclosures in the Registration Statement and Prospectus filed by Franklin with the Securities and Exchange Commission in connection with its Preferred IPO which commenced on or about May 6, 2006, have proved to be materially false and/or misleading, to the injury of investors who purchased preferred shares in or traceable to that May 2006 offering. On July 17, 2009, this action was transferred and consolidated into the action already pending the same court.
INDUSTRY CLASSIFICATION:
SIC Code: 6036
Sector: Financial
Industry: S&Ls/Savings Banks
| COMPANY/ISSUER NAME: | Franklin Bank Corporation |
| COMPANY/ISSUER TICKER: | FBTX |
| COMPANY WEBSITE: | http://www.bankfranklin.com |
| FIRST IDENTIFIED COMPLAINT IN THE DATABASE | |||||||||||||||||
| The Harold Roucher Trust U/A DTD, et al. v. Franklin Bank Corporation, et al. | |||||||||||||||||
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| DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT | |||
| Class Action Complaint For Violations Of The Federal Securities Laws | |||
| Type: Complaint | Date on the document: 6/6/2008 | ||
| Order | |||
| Type: Order of Consolidation | Date on the document: 07/31/2008 | ||
| Order To Consolidate Related Case | |||
| Type: Order of Consolidation | Date on the document: 11/10/2008 | ||
| Order Designating Lead Plaintiff | |||
| Type: Order Appointing LP/LC | Date on the document: 11/19/2008 | ||
| REFERENCE COMPLAINT | |||||||||||||||||
| In re Franklin Bank Corp., Securities Litigation | |||||||||||||||||
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| DOCUMENTS FOR THE REFERENCE COMPLAINT | |||
| Consolidated Amended Complaint | |||
| Type: Complaint | Date on the document: 03/06/2009 | ||
| U.S. District Court Civil Docket | |||
| Type: Docket | Date on the document: 10/14/2009 | ||
| OTHER DOCUMENTS | |||
| Class Action Complaint for Violations of the Federal Securities Laws - Jury Trial Demanded | |||
| Case Name and/or Number: Charles F. Buccieri, et al. v. Franklin Bank Corp, et al. | |||
| Type: Complaint | Date on the document: 6/13/2008 | ||
| Class Action Complaint | |||
| Case Name and/or Number: The Harold Roucher Trust U/A DTD, et al. v. RBC Capital Markets Corp., et al. | |||
| Type: Complaint | Date on the document: 05/04/2009 | ||
| Order | |||
| Case Name and/or Number: The Harold Roucher Trust U/A DTD, et al. v. RBC Capital Markets Corp., et al. | |||
| Type: Order | Date on the document: 07/17/2009 | ||
| U.S. District Court Civil Docket | |||
| Case Name and/or Number: The Harold Roucher Trust U/A DTD, et al. v. RBC Capital Markets Corp., et al. | |||
| Type: Docket | Date on the document: 07/17/2009 | ||
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