Case Page

 

Case Status:    SETTLED
On or around 08/13/2009 (Date of order of final judgment)

Filing Date: March 20, 2007

On February 17, 2009, parties filed a Stipulation of Settlement with the court, outlining the $6,349,000 agreement. Coast Financial's insurer will pay a majority sum of the settlement. The judge granted preliminary approval on February 26, 2009.

On October 8, 2008 the judge summarily dismissed defendant Hacker Johnson & Smith, P.A, Coast Financial's external auditor. Plaintiffs responded by filing a Notice of Appeal on October 20.

Plaintiffs filed a Consolidated Class Action Complaint against two of the original individual defendants and the company but voluntarily dismissed the previously named interim CFO and COO without prejudice. Additionally named was the Board Chairman, several Outside Directors and two Underwriters. The remaining defendants filed a motion to dismiss on December 3, 2007. The judge granted the motion in part on March 13, 2008 and allowed plaintiffs to amend the deficiencies of the original complaint. An Amended complaint was filed on April 2. A second round of dismissal motions were filed April 24, which were subsequently denied on June 6, 2008. Defendants have filed answers to the complaint and discovery is scheduled to continue through December 2009.

On June 22, 2007, the Court entered the Order signed by U.S. District Judge Richard A. Lazzara granting the motion to consolidate, granting the motion to appoint lead plaintiffs, and granting the motion to approve selection of lead counsel.

According to a press release dated March 22, 2007, the complaint alleges violations of the Securities Exchange Act of 1934. During the class period, Coast issued a series of statements relating to Coast's residential loan portfolio. Coast claimed to have significantly increased its residential loan portfolio, but failed to disclose the build up and concentration of loans for residential construction projects that would be undertaken by Construction Compliance, Inc. ("CCI"). Coast lent millions to individuals to build residential homes, and much of this construction was undertaken by a single company, CCI. This increased the risk of loan default by borrowers and the devaluation of Coast's collateral. Coast failed to disclose that risk in any of its public filings and failed to properly reserve for loan losses on its financial statements. Coast and its officers were well aware of the build up of construction contracts with CCI, the complaint alleges. On January 19, 2007, Coast announced that it would likely suffer an impairment to its loan portfolio because CCI was going out of business and would not complete many of its construction projects. Coast's stock price fell approximately 50%. Later, Coast disclosed it would add $14 million in loan loss reserves to deal with the CCI problem.

COMPANY INFORMATION:

Sector: Financial
Industry: Regional Banks
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: CFHI
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: M.D. Florida
DOCKET #: 07-CV-00479
JUDGE: Hon. Richard A. Lazzara
DATE FILED: 03/20/2007
CLASS PERIOD START: 10/28/2005
CLASS PERIOD END: 01/19/2007
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Lerach Coughlin Stoia Geller Rudman & Robbins LLP (San Diego)
    655 West Broadway, Suite 1900, Lerach Coughlin Stoia Geller Rudman & Robbins LLP (San Diego), CA 92101
    619.231.1058 619.231.7423 ·
  2. Saxena White PA (Boca Raton)
    2424 North Federal Highway, Suite 307, Saxena White PA (Boca Raton), FL 33431
    800.361.5096 888.782.3081 · info@saxenawhite.com
  3. Vianale & Vianale LLP (former Boca Raton)
    The Plaza - Suite 801, 5355 Town Center Road., Vianale & Vianale LLP (former Boca Raton), FL 33486
    561.391.4900 561.368.9274 · info@vianalelaw.com
No Document Title Filing Date
COURT: M.D. Florida
DOCKET #: 07-CV-00479
JUDGE: Hon. Richard A. Lazzara
DATE FILED: 04/02/2008
CLASS PERIOD START: 01/21/2005
CLASS PERIOD END: 01/22/2007
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Coughlin Stoia Geller Rudman & Robbins LLP (Boca Raton)
    197 South Federal Highway, Suite 200, Coughlin Stoia Geller Rudman & Robbins LLP (Boca Raton), FL 33432
    561.750.3000 56.750.3364 · info@csgrr.com/
  2. Saxena White PA (Boca Raton)
    2424 North Federal Highway, Suite 307, Saxena White PA (Boca Raton), FL 33431
    800.361.5096 888.782.3081 · info@saxenawhite.com
No Document Title Filing Date
No Document Title Filing Date