Case Page

 

Case Status:    SETTLED
On or around 06/26/2012 (Date of order of final judgment)

Filing Date: July 25, 2008

According to a law firm press release, the complaint charges CIT and certain of its officers and directors with violations of the Securities Exchange Act of 1934. CIT is a leading commercial and consumer finance company, providing clients with financing and leasing products and advisory services in North America, Europe, Latin America and Asia Pacific.

The complaint alleges that during the Class Period, defendants made false and misleading statements about the Company's financial condition. Specifically, CIT's public financial statements failed to account for tens of millions of dollars in loans to Silver State Helicopter ("Silver State"), which were highly unlikely to be repaid
and should have been written off.

On March 6, 2008, Keefe, Bruyette & Woods issued an analyst report on CIT lowering its first quarter 2008 earnings per share estimate by $.08 based on concerns that CIT would have to write down a significant portion of its private student loan portfolio, including the risk that the Company would have to charge off $179 million of private student loans made to students of Silver State, which recently filed for bankruptcy. As a result, CIT's stock price dropped $4.50 to close to $15.86 on March 6, 2008.

On May 26, 2009, the Court entered the Order signed by Judge Barbara S. Jones consolidating three related actions and approving Pensioenfonds Horeca &
Catering (PH&C) as lead plaintiff and approving PH&C's selection of Coughlin Stoia Geller Rudman & Robbins LLP as lead counsel. On July 16, 2009, the lead plaintiff filed a Consolidated Complaint adding certain officers as defendants and adding claims from The Securities Act of 1933. On September 11, 2009, the defendants responded by filing a motion to dismiss the Consolidated Amended Complaint.

On November 9, 2009, defendant CIT Group Inc. filed a suggestion of bankruptcy, and on November 16, 2009, the lead plaintiff filed a Notice of Dismissal of Defendant CIT Group Inc. On June 10, 2010, the Court entered the Opinion and Order signed by Judge Barbara S. Jones denying the defendants’ motion to dismiss. The plaintiffs filed a motion to certify the class on November 19, 2010. The plaintiffs filed leave to file an amended motion for class certification, which was granted on September 9, 2011. Plaintiffs' original motion for class certification was dismissed as moot.

On March 13, 2012, a Settlement Agreement was filed with the Court. On March 16, 2012, the Court issued an Order Preliminarily Approving Settlement And Providing For Notice. On March 23, 2012, the Court issued a Revised Order Preliminarily Approving Settlement And Providing For Notice with a revised settlement hearing date.

On June 13, 2012, the Court issued an order approving the plan of allocation of settlement proceeds. On the same date, the Court issued an order awarding attorneys' fees and expenses and plaintiffs' expenses. Finally, the Court also issued the Final Judgment and Order of Dismissal With Prejudice.

COMPANY INFORMATION:

Sector: Financial
Industry: Consumer Financial Services
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: CIT
Company Market: New York SE
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: S.D. New York
DOCKET #: 08-CV-06613
JUDGE: Hon. Barbara S. Jones
DATE FILED: 07/25/2008
CLASS PERIOD START: 04/18/2007
CLASS PERIOD END: 03/05/2008
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Coughlin Stoia Geller Rudman & Robbins LLP (San Diego)
    401 B Street, Suite 1700, Coughlin Stoia Geller Rudman & Robbins LLP (San Diego), CA 92101
    206.749.5544 206.749.9978 · info@csgrr.com/
No Document Title Filing Date
COURT: S.D. New York
DOCKET #: 08-CV-06613
JUDGE: Hon. Barbara S. Jones
DATE FILED: 07/16/2009
CLASS PERIOD START: 12/12/2006
CLASS PERIOD END: 03/05/2008
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Coughlin Stoia Geller Rudman & Robbins LLP (Manhattan)
    52 Duane Street, 7th Floor, Coughlin Stoia Geller Rudman & Robbins LLP (Manhattan), NY 10007
    212.693.1058 212.693.1058 ·
  2. Coughlin Stoia Geller Rudman & Robbins LLP (Melville)
    58 South Service Road, Suite 200, Coughlin Stoia Geller Rudman & Robbins LLP (Melville), NY 11747
    631.367.7100 631.367.1173 · info@csgrr.com/
  3. Coughlin Stoia Geller Rudman & Robbins LLP (San Diego)
    655 West Broadway, Suite 1900, Coughlin Stoia Geller Rudman & Robbins LLP (San Diego), CA 92101
    619.231.1058 619.231.7423 · info@csgrr.com/
No Document Title Filing Date