Corus Bankshares, Inc. - Securities Class Action

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Stanford Law School

Corus Bankshares, Inc. Summary: According to a press release dated March 11, 2009, the complaint alleges that the representations contained in Corus’ press releases, SEC filings, conference calls, and presentations during the Class Period were materially false and misleading when made because they failed to disclose: (i) that Corus was failing to recognize losses on its condominium loans in accordance with generally accepted accounting principles (“GAAP”); (ii) that Corus and/or its affiliates was purchasing condominiums in developments Corus had financed in an attempt to: (a) inflate the appraised values of condominiums to delay having to recognize losses on financing for such condominiums; (b) inflate developers’ sales figures to increase the likelihood of successful future sales; and (c) create the illusion of successful sales histories in order to inflate appraisal values for the condominiums to ensure inflated future prices for the condominiums; and (iii) that Corus was involved in detailed and in-depth negotiations with the Federal Reserve Bank of Chicago and the Office of the Comptroller of Currency regarding its deteriorating pool of condominium loans.

On January 30, 2009, Corus released partial financial results for fiscal 2008 and stated that “Corus is suffering from the extraordinary effects of what may ultimately be the worst economic downturn since the Great Depression.” Upon this announcement, shares fell nearly 47% to close at $.59 per share on February 2, 2009, on heavy trading volume in excess of two million shares.

According to the Minute Order dated June 17, 2009, the Honorable Elaine E. Bucklo appointed Todd L. Johnson as lead plaintiff and approved Coughlin Stoia Geller Rudman & Robbins LLP as lead counsel and Miller Law LLC as liaison counsel. On August 3, 2009, the lead plaintiff filed a Consolidated Class Action Complaint. On October 1, 2009, the defendants filed a motion to dismiss the Consolidated Class Action Complaint.

On April 6, 2010, the Honorable Elaine E. Bucklo granted in part and denied in part the defendants’ motion to dismiss. According to the Order, Corus’s motion to dismiss is denied, except with respect to Count I’s section 10(b) claim against Corus’s Chief Financial Officer.

On June 18, 2010, a Suggestion of Bankruptcy was filed as to Corus Bankshares, Inc. On July 17, 2010, a Stipulation of Dismissal was filed as to defendant Corus Bankshares, Inc. According to the Stipulation, the Lead Plaintiff’s claims in the Consolidated Class Action Complaint for Violation of the Federal Securities Laws against Corus are voluntarily dismissed, without prejudice. The court is now awaiting the plaintiffs motion for class certification.

On May 17, 2011, an unopposed motion to preliminarily approve the settlement was filed. According to the Stipulation of Settlement, the proposed settlement is in the amount of $10 million to be paid by the company's insurer. The settlement was preliminarily approved on June 2, 2011. The fairness hearing was set for September 12, 2011.

On September 12, 2011, the Honorable Elaine E. Bucklo approved the settlement and the plan of allocation, and awarded attorneys’ fees of 19.5% of the Settlement Fund and payment of expenses in an aggregate amount of $200,000. The case is now closed.

INDUSTRY CLASSIFICATION:
SIC Code: 6021
Sector: Financial
Industry: Regional Banks

COMPANY/ISSUER NAME:	Corus Bankshares, Inc.
COMPANY/ISSUER TICKER:	CORS
COMPANY WEBSITE:	http://www.corusbank.com

FIRST IDENTIFIED COMPLAINT IN THE DATABASE

Tracy Jones, et al. v. Corus Bankshares, Inc., et al.

COURT: N.D. Illinois	DOCKET NUMBER: 09-CV-01538
JUDGE NAME: Hon. Elaine E. Bucklo
DATE FILED: 03/11/2009	SOURCE:
CLASS PERIOD START: 01/25/2008	CLASS PERIOD END: 01/30/2009
TYPE OF COMPLAINT: Complaint (Unamended and Unconsolidated)
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Ademi & O'Reilly, LLP 3620 East Layton Ave., Cudahy, WI, 53110 (voice) 866-264-3995, (fax) 414-482-8001, inquiry@ademilaw.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/ Miller Law LLC 115 S. LaSalle Street, Suite 2910, Chicago, IL, 60603 (voice) 312.676.2665, (fax) , info@MillerLawLLC.com _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 3

DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT
Class Action Complaint For Violation Of The Federal Securities Laws
Type: Complaint		Date on the document: 03/11/2009
Todd L. Johnson’s Motion For Consolidation, Appointment As Lead Plaintiff And Approval Of Lead Plaintiff’s Selection Of Lead And Liaison Counsel
Type: Motion		Date on the document: 05/11/2009
Minute Order
Type: Order Appointing LP/LC		Date on the document: 06/17/2009

REFERENCE COMPLAINT

Tracy Jones, et al. v. Corus Bankshares, Inc., et al.

COURT: N.D. Illinois	DOCKET NUMBER: 09-CV-01538
JUDGE NAME:
DATE FILED: 08/03/2009	SOURCE:
CLASS PERIOD START: 01/25/2008	CLASS PERIOD END: 01/30/2009
TYPE OF COMPLAINT: Consolidated Complaint
PLAINTIFF FIRMS NAMED IN COMPLAINT:
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/ _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 1

DOCUMENTS FOR THE REFERENCE COMPLAINT
Consolidated Class Action Complaint for Violation of the Federal Securities Laws
Type: Complaint		Date on the document: 08/03/2009
Memorandum Opinion And Order
Type: Order		Date on the document: 04/06/2010
Stipulation Of Voluntary Dismissal Without Prejudice Of Defendant Corus Bankshares, Inc.
Type: Other		Date on the document: 07/12/2010
Stipulation Of Settlement
Type: Settlement		Date on the document: 05/17/2011
Order Preliminarily Approving Settlement And Providing For Notice
Type: Order		Date on the document: 06/02/2011
Final Judgment And Order Of Dismissal With Prejudice
Type: Order		Date on the document: 09/12/2011
U.S. District Court Civil Docket
Type: Docket		Date on the document: 09/12/2011

OTHER DOCUMENTS
Complaint For Violations Of The Federal Securities Laws
Case Name and/or Number: Stephen Brady, et al. v. Corus Bankshares, Inc. And Robert J. Glickman et al.
Type: Complaint		Date on the document: 04/07/2009
Class Action Complaint For Violation Of The Federal Securities Laws
Case Name and/or Number: Yin-Wah Chan, et al. v. Corus Bankshares, Inc. And Robert J. Glickman et al.
Type: Complaint		Date on the document: 04/22/2009
Complaint For Violations Of The Federal Securities Laws
Case Name and/or Number: Layton F. Kinney, et al. v. Corus Bankshares, Inc. And Robert J. Glickman et al.
Type: Complaint		Date on the document: 04/22/2009

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